The local Indian rebar market has showed a mixed trend in the past week and an absence of any firm direction, with prices showing marginal changes in either direction and with buyers largely declining to conclude firm bookings awaiting greater clarity in short- and medium-term movements, SteelOrbis learned from trade and industry circles on Tuesday, April 29.
Sources said that rebar trade prices are stable at INR 49,300/mt ($579/mt) ex-Mumbai and also unchanged at INR 48,500/mt ($569/mt) ex-Chennai in the south.
Rebar trade prices, however, showed a gain of INR 300/mt ($4/mt) to INR 45,000/mt ($528/mt) ex-Raipur in the central region and down INR 100/mt ($1.50) to INR 44,600/mt ($524/mt) ex-Durgapur in the east.
According to the sources, large industrial buyers led by engineering, procurement, construction (EPC) companies have continued to be absent from the market, negatively impacting sentiments, while retail sales have showed some slowdown as smaller consumers like real estate developers have preferred to be on the sidelines awaiting further possible declines in the price line.
“Price may continue to decline unless overall industrial growth and finished steel demand improves. Induction furnace operators are seeking a slowdown in movement of stocks out of mills and a slight increase in inventories, prompting some regional mills to drop prices,” a Kolkata-based distributor said.
“Sentiments are very poor in northern India as market participants expect heat wave conditions during the summer months will slowdown construction activities and thereby lower procurement of raw materials. This is depressing the overall mood across markets,” he added.
$1 = INR 85.33