Local Indian rebar prices have continued their sharp decline over the past week amid muted trade activity with producers dropping prices and trade channels pushing discounted sales because of rising inventory pressures, as buyers have reduced booking volumes significantly, SteelOrbis learned from trade and industry circles on Tuesday, April 28.
Sources said that rebar trade-level prices have lost INR 1,200/mt ($13/mt) to INR 50,300/mt ($534/mt) ex-Mumbai and are down INR 200/mt ($2/mt) to INR 51,800/mt ($550/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 200/mt ($2/mt) to INR 46,100/mt ($489/mt) ex-Raipur and are also down INR 200/mt ($2/mt) to INR 45,400/mt ($482/mt) ex-Durgapur in the east.
According to the sources, retail buyers were almost absent from the market, while large buyers represented by engineering procurement construction (EPC) companies have also been resorting to “small-volume need-based” purchases, anticipating that inflationary pressures building up across the economy will soften demand across industries.
They said that producers and distributors are either dropping prices or offering discounts to push sales as the market has definitely moved into an oversupply situation, following consecutive weeks of slowdown.
“The sentiments are getting worse. Prices are down but buyers are still on the sidelines and bookings are almost nil. These are signs of a deep bearish market without any positive drivers on the immediate horizon,” a Kolkata-based distributor said.
“Dropping prices are still not attracting buyers. We are in for a prolonged downturn. Every segment of the market, sellers and consumers, is impacted by inflationary pressure. The energy crisis is hitting every industrial segment and the demand depression is very deep,” he said.
$1 = INR 94.19
