The local Indian rebar market has continued to defy the overall bearish steel market conditions, with trade prices consolidating at higher levels amid strong bookings and retail sales, with even medium-sized secondary mills increasing their prices, SteelOrbis learned from trade and industry circles on Tuesday, January 18.
Indian rebar trade prices have increased by a range of INR 500-1,200/mt ($7-16/mt) on the back of strong bookings reported by mills and the faster movement of stocks at the retail level.
According to the sources, prices are up INR 1,000/mt ($13/mt) to INR 52,600/mt ($709/mt) ex-Mumbai, while they have increased by INR 700/mt ($9/mt) to INR 48,900/mt ($659/mt) ex-Raipur in the central regional market.
Even the eastern regional market of Rourkela which in the earlier week showed a decline in prices recorded a sharp increase, up INR 1,200/mt ($16/mt) to INR 47,700/mt ($643/mt) ex-warehouse, indicating positive sentiments across all regions, the sources said.
“The uncertainty of the new wave of the pandemic is being discounted by the market, with most local governments indicating that economic activities would not be restricted. Government-funded large projects have commenced bookings with medium and large mills. Retail sales to housing construction projects are buoyant and stocks are moving faster,” a source at Shyam Steel Limited, eastern India’s largest rebar producer, said.
“The revival in sentiments and trade activity is much more holistic now with all regions reporting strong sales. Mills are taking advantage of improved market conditions to increase prices too,” the sources said.
$1 = INR 74.20
