After the recent surge in prices by secondary and integrated mills, the local Indian rebar market has slipped into a correction triggered by resistance from buyers, SteelOrbis learned from trade and industry circles on Tuesday, August 15.
Indian rebar trade prices have moved down by INR 500/mt ($6/mt) at INR 47,500/mt ($572/mt) ex-Mumbai and are down INR 300/mt ($4/mt) to INR 48,500/mt ($584/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 400/mt ($5/mt) to INR 44,200/mt ($533/mt) ex-Raipur and are down INR 900/mt ($11/mt) to INR 44,200/mt ($533/mt) ex-Durgapur in the east.
“The correction in the market was expected and is normal after priced increased too fast and too much compared to the demand situation. High bookings by engineering procurement, construction (EPC) companies which supported the price increases by mills also tapered off, triggering the correction,” a Kolkata-based distributor said.
“Having said that, the outlook still remains on the positive side. Trade channels are expected to return as the next busy season, post-monsoon, approaches. The next cycle will see price increases but at a more modest pace,” he said.
According to an official with eastern India’s largest rebar producer, demand and prices will see regional variations in the coming weeks, with northern and central markets seeing much more positive trends as these are currently seeing large ongoing construction projects of railways, highways and other infrastructure.
He said slower movement of stocks at the retail level from soft demand in real estate would continue to offer headwinds to secondary mills’ attempts to push higher volumes in the market.
$1 = INR 83.00