Local Indian rebar trade prices have suffered big setbacks over the past week amid the combined impact of buyers’ resistance to recent surges, rises in inventories prompting discounted sales, and a negative demand outlook based on inflationary pressures mounting across industrial sectors, SteelOrbis learned from trade and industry circles on Tuesday, April 21.
Sources said that rebar trade prices have slumped INR 2,500/mt ($27/mt) to INR 51,500/mt ($554/mt) ex-Mumbai and have lost INR 700/mt ($7/mt) to INR 52,000/mt ($559/mt) ex-Chennai in the south.
Rebar trade prices are down INR 1,400/mt ($15/mt) to INR 46,300/mt ($498/mt) ex-Raipur and have lost INR 2,100/mt ($23/mt) to INR 45,600/mt ($490/mt) ex-Durgapur in the east.
According to the sources, both secondary mills and market intermediaries are reported to be pushing discounted sales in order to cope with the sharp fall in trade volumes, with buyers starting to show resistance to recent price rises by reducing booking volumes.
At the same time, large buyers have also remained out of the market, becoming cautious in restocking construction grade raw materials, expecting an overall slowdown in activity in reaction to rising energy prices and inflationary pressure dampening demand projections, the sources added.
“We feel that the market is entering a prolonged bearish phase as most macro and micro indicators are turning negative. Producers had been too quick to raise prices and now the market is reacting against it,” a Kolkata-based distributor said.
“Inventories at distributors and secondary mills are on the rise. With demand not showing any positive, discounted sales will become the norm now,” he added.
