Local Indian rebar trade prices have entered a strong positive zone amid expectations of a demand rebound even though gains have showed wide variations as business in some regions has remained closed for the festivals, SteelOrbis learned from trade and industry circles on Tuesday, October 4.
The sources said that most market participants are restocking amid bullish sentiments of demand rebounding on the back of a rise in construction activity as soon as the festival season ends later this month, and induction furnace operators too have been attempting to push up prices to improve realizations.
Sources said that rebar trade prices are up INR 1,300/mt ($16/mt) to INR 55,500/mt ($678/mt) ex-Mumbai, but down INR 500/mt ($8/mt) to INR 55,500/mt ($678/mt) ex-Chennai in the south.
Rebar trade prices have remained at INR 51,900/mt($634/mt) ex-Raipur in the central region and are up INR 400/mt ($5/mt) to IR 50,900/mt($622/mt) ex-Durgapur in the east.
“Positive sentiment is gaining roots across markets. Trade volumes have been modest, but that is largely because of lower overall business activity for festivals. With billet prices softening, the rise in rebar price will ensure an improvement in margins of furnace operators,” a Kolkata based distributor said.
“The strong demand outlook coupled with improving margin of producers will ensure the market gains strength for both buyers and sellers. However, at the same time, rising inflation as per the latest data and the central bank increasing the cost of funds are headwinds going forward,” he said.
$1 = INR 81.89
