Local Indian rebar prices have continued to consolidate at higher levels as induction furnace and blast furnace operators have continued to hike prices, but the pace of increase in trade prices has slowed slightly as retail buyers are heard to be taking a break from bulk bookings, SteelOrbis learned from trade and industry circles on Tuesday, September 5.
Indian rebar trade prices are up INR 300/mt ($4/mt) to INR 51,600/mt ($624/mt) ex-Mumbai and up INR 1,500/mt ($18/mt) to INR 52,300/mt ($632/mt) ex-Chennai in the south.
Rebar trade prices are up INR 400/mt ($5/mt) to INR 48,600/mt ($588/mt) ex-Raipur in the central regional market and have gained INR 500/mt ($6/mt) to INR 48,000/mt ($580/mt) ex-Durgapur in the east.
Sources said that both secondary induction furnace operators and integrated mills have increased long product prices twice over the past four weeks, riding on the fall in inventories and in supplies from mills to the market.
However, after the sustained surge in prices and volumes, some amount of “fatigue and caution” was seen to be setting in, but most market participants maintained it is not likely to trigger any significant correction and the outlook remains very bullish even amid the easing of the uptrend.
“These are still early days in the busy season and the market will continue to gain momentum as industrial and construction activity intensifies over the coming weeks. It is also early days to say the market is in a shortage situation, but supplies have definitely been getting tighter over the weeks. Integrated mills are extending delivery timelines too,” a Kolkata-based distributor said.
$1 = INR 82.70