The local Indian rebar market has continued to lack a firm direction with trade prices remaining stable in major centers, while losing ground in some regional markets, at a time when major integrated mills have been pushing large volumes into the market, while trade channels have been keen to avoid overstocking, SteelOrbis learned from trade and industry circles on Tuesday, September 26.
Indian rebar trade prices have remained stable at INR 52,100/mt ($626/mt) ex-Mumbai and also unchanged at INR 51,800/mt ($623/mt) ex-Chennai in the south.
But sentiments in contrast have become bearish in regional markets, with rebar prices slumping by INR 1,100/mt ($13/mt) to INR 46,600/mt ($560/mt) ex-Raipur and down INR 1200/mt ($14/mt) to INR 46,900/mt ($564/mt) ex-Durgapur in the east.
“The market is in a flux and adjusting to the new dynamics of robust demand and at the same time higher supplies coming into the market from large integrated mills. The outlook remains positive although there will be intermittent dips as traders have been cautious in restocking large volumes,” a Kolkata-based distributor said.
“The variations in rebar trade prices are also reflecting varied prices of intermediates. For example, sponge iron prices hardened in the east but have been seen to be slipping in the central region. Also, there is a lot of volatility in billet prices,” he said.
Sources at JSW Steel Limited said that ex-works base rebar prices increased by INR 750/mt ($9/mt) over the past week as stocks were moving very fast from mill to market and it was “a good time” to improve realizations and price increases are easily absorbed by large industrial buyers.
$1 = INR 83.20
