The uptrend in the local Indian rebar market has taken a pause and, while prices have remained largely stable, market participants maintain a divergent short-term outlook taking differing cues from the withdrawal of large construction buyers from the market, SteelOrbis learned from trade and industry circles on Tuesday, March 18.
Sources said that the Mumbai market showed a price loss of INR 200/mt ($2/mt) to INR 49,300/mt ($567/mt), but prices in other regions have held ground supported by moderate retail sales.
Rebar trade prices are stable at INR 47,000/mt ($541/mt) ex-Chennai in the south and also unchanged at INR 43,600/mt ($502/mt) ex-Raipur in central regional market. In Durgapur in the east, the price is also stable, at INR 43,400/mt ($500/mt).
Most notably, large engineering, procurement, construction (EPC) companies which had been supporting the recent sustained uptrend with large bookings have mostly been absent over the past week.
However, it is unclear whether the pause in restocking by these EPCs is owing to festival holidays or indicates fully stocked-up positions.
“The market is critically poised and can move in either direction going forward. Trade activity is also limited, with market participants awaiting indications of the next cycle. Our own assessment is that, with the fiscal year coming to a close, rebar prices will move in a narrow range over the next few weeks,” a Kolkata-based distributor said.
$1 = INR 86.80