The local Indian rebar market has showed mixed trends over the past week with traded prices moving in a narrow range, but mostly down, amid confusing signals from rising inventories and a divergence in finished steel price trends, SteelOrbis has learned from trade and industry circles on Tuesday, December.
Trading conditions have remained thin with one section of the market wary over reports of rising inventories at mills, while another section has maintained that the downtrend of finished steel prices has run its course over the past six months and is now poised for an upward correction.
Rebar prices are up INR 200/mt ($3/mt) to INR 49,700/mt ($655/mt) ex-Mumbai, but is down INR 500/mt ($7/mt) in the Raipur regional market to INR 45,700/mt ($602/mt) ex-warehouse.
However, the biggest losses have been reported from the eastern regional market of Rourkela where prices slumped INR 1,200/mt ($16/mt) to INR 44,300/mt ($584/mt) ex-warehouse, sources said.
“Buyers are confused over the continuous fall in price of sponge iron and semis. For example, sponge iron prices are down INR 700-1,000/mt ($9-13/mt) on week-on-week basis. Hence, rebar buyers are expecting such losses to be reflected in further declines in long products too,” a Kolkata-based steel distributor said.
“But at the same time, a section of the market maintains that prices are nearing a bottom and that lower levels will trigger fresh buying. The market consolidation at a lower level is a positive for end-users and can increase trading volumes. Producers will have to re-align to lower price expectations but improved volume sales,” he added.
$1 = INR 75.90
