The local Indian rebar market has sunk deeper into negative territory with prices continuing to seek lower levels amid weak retail demand and trade channels facing a tight liquidity situation worsened by the slow movement of existing stocks, SteelOrbis learned from trade and industry circles on Tuesday, April 25.
Indian rebar trade prices are down by INR 200/mt ($2/mt) to INR 54,400/mt ($664/mt) ex-Mumbai and have also lost INR 200/mt ($2/mt) to INR 53,800/mt ($657/mt) ex-Chennai in the south.
Rebar trade prices have shed INR 1,000/mt ($2/mt) to INR 49,900/mt ($609/mt) ex-Raipur and are down INR 1,400/mt ($19/mt) to INR 50,300/mt ($614/mt) ex-Durgapur in the east.
The sources said that, while losses have been limited in major trading centers due to some modest support from large project procurements, setbacks have been significant in regional markets largely dependent on retail offtake by smaller real estate developers and on rural and semi-rural construction, which has come to a near halt.
“Induction furnace operators are being forced to drop prices under inventory pressures. Trade channels are reducing fresh bookings almost every day as working capital is too expensive and lot of funds are already locked up in existing high stock levels,” a Kolkata-based distributor said.
“The outlook is also very pessimistic. Heat wave conditions across northern and eastern India have slowed down ongoing construction work and hence raw material restocking. Going forward, the forecast of below-average monsoon rain will further impact rural income and demand. So, we are expecting a prolonged season of low demand and prices,” he said.
$1 = INR 81.90