Local Indian rebar market have continued to consolidate at higher levels with prices recording major gains amid a combination of large integrated mills increasing prices, strong restocking by trade channels preparing for the post-monsoon season demand surge, and a revival of retail bookings by real estate developers, SteelOrbis learned from trade and industry circles on Tuesday, August 29.
For the second consecutive week, rebar trade prices have recorded major gains, unprecedented in recent months, reflected in a price surge of INR 1,800/mt ($22/mt) to INR 51,300/mt ($621/mt) ex-Mumbai and surging by INR 1,500/mt ($18/mt) to INR 50,800/mt ($615/mt) ex-Chennai in the south.
Rebar trade prices are up INR 2,300/mt ($28/mt) to INR 48,200/mt ($584/mt) ex-Raipur and are up INR 2,200/mt ($27/mt) to INR 47,500/mt ($575/mt) ex-Durgapur in the east.
Sources said that almost every integrated mill has increased ex-plant rebar prices by the range of INR 500-1,500/mt ($6-18/mt), with a section of the trade apprehending the market is entering a short supply situation, triggering hectic restocking.
“The recovery in demand, prices and trade volumes seen over the past three to four weeks has been beyond expectations and has caught most market participants by surprise. And the usual post-monsoon revival of demand and industrial activity is still to start. We cannot rule out a shortage in the market in the short term,” a Kolkata-based distributor said.
“We hear that large-volume deliveries against tender-based sales of integrated mills are being extended. Though the reasons are not officially stated, it is presumed large mills have a tight inventory situation. Hence, trade prices can be expected to continue to seek higher ground once full industrial and construction activity starts next month,” he said.
$1 = INR 82.60
