The local Indian rebar market has showed high volatility with large variations across regional markets amid integrated mills increasing their listed prices, while buyers particularly in eastern and central regions have been retreating, leading to a sharp fall in trading conditions, SteelOrbis has learned from trade and industry circles.
Large Indian integrated mills led by Jindal Steel and Power Limited (JSPL) and Steel Authority of India Limited (SAIL) have increased construction grade long product prices by an average of INR 1,000/mt ($12/mt).
In reaction, rebar trade prices have surged by INR 1,300/mt ($16/mt) to INR 58,600/mt ($718/mt) ex-Mumbai, but have edged down by INR 300/mt ($4/mt) to INR 53,200/mt ($652/mt) ex-Chennai in the south.
Rebar prices have lost INR 200/mt ($2/mt) to INR 51,700/mt ($634/mt) ex-Raipur and have plunged by INR 2,600/mt ($32/mt) to INR 50,900/mt ($624/mt) ex-Durgapur in the east.
According to several market participants, while there has been a lot of optimism over the government increasing spending on infrastructure that would percolate to the creation of demand for construction material, prices have been rising too fast, threatening to drive up project costs and fuel already high inflationary pressures in the economy.
“The volatility in prices seen over the past two weeks is not positive for either buyers or sellers. Buyers are showing fatigue and resistance to continuous price rises. It is also counter-productive for sellers, as stock movement is showing signs of slowing down,” a Kolkata-based distributor said.
“All eyes are on the national budget to be presented by the government tomorrow and which will set the next trend. But despite optimism over the government pushing money into infrastructure, the market is well poised for a correction,” he said.
$1 = INR 81.60