The local Indian rebar market has remained under pressure in the past week with prices suffering from demand and stock movement slowdowns due to the spread of the monsoon rains across regions, while a few large mills attempted price increases early in the week but only to roll them back within a few days in the face of buyers’ resistance, SteelOrbis learned from trade and industry circles on Tuesday, June 3.
Sources said that trade level rebar prices have lost INR 600/mt ($7/mt) to INR 46,400/mt ($543/mt) ex-Mumbai and are down INR 200/mt ($2/mt) to INR 47,300/mt ($553/mt) ex-Chennai in the south.
Rebar trade prices have slipped INR 600/mt ($7/mt) to INR 42,500/mt ($497/mt) ex-Raipur and are down INR 400/mt ($4/mt) to INR 41,400/mt ($484/mt) ex-Durgapur in the east.
According to sources, a few blast furnace (BF) operators early in the week attempted to increase rebar prices by INR 500/mt ($6/mt) but were quick to roll back the increase within two to four days in the face of buyers’ resistance and reports of booking cancellations by large construction buyers.
“Trade activity is falling on a daily basis. Even enquiries are falling as reports come in of heavy rains and flooding across regions. The few transactions that are being concluded at retail levels are mostly after buyers secure extended credit terms,” a Kolkata-based distributor said.
“Prices have further downside risks as rains will get more widespread, impacting construction activities across sectors. Demand for rebar will see a commensurate weakness and its full impact is yet to be reflected in current prices. The option for production cuts by induction furnace operators to attempt to stabilise the supply side can be expected to come into play over the next few weeks,” he said.
$1 = INR 85.47