The prolonged downturn in the local Indian rebar market has been reversed over the past week, with prices recording gains across most regional markets amid the revival of restocking by trade channels and large bookings by engineering, procurement and construction (EPC) companies, but a section of distributors and secondary mills have been cautious, claiming that the upturn needs to consolidate at least for a month for a stable revival to be seen, SteelOrbis learned from trade and industry circles on Tuesday, May 16.
Sources said that rebar trade prices are up INR 1,700/mt ($21/mt) to INR 54,100/mt ($657/mt) ex-Mumbai, but have remained unchanged at INR 52,500/mt ($638/mt) ex-Chennai in the south.
Rebar prices have moved up INR 600/mt ($7/mt) to INR 48,100/mt ($584/mt) ex-Raipur in the central region and are up INR 400/mt ($5/mt) to INR 48,600/mt ($591/mt) ex-Durgapur in the east.
“The reversal of the downturn needs to be seen with caution. Trade channels are restocking, having been out of the market for several weeks. But the gains in prices are on the back of the still very low trading volumes. Large volume bookings from construction companies need to be sustained over several weeks to provide support to the market to consolidate the recent gains,” a Kolkata-based distributor said.
“There are several types of headwinds ahead. The rainy Monsoon season is expected to commence next month, which generally triggers a slowdown in construction activities. Trade channels will still continue to face tightened liquidity and ability to commit large bookings. Secondary mills are also carrying large inventories still to come into the market,” he said.
$1 = INR 82.30