The downtrend in local Indian rebar market has continued during the past week, with prices slipping as positive sentiments stemming from the easing of geopolitical tensions in the region were largely offset by the continued absence of large engineering, procurement, construction (EPC) companies from the market combined with the decline in activity in the retail segment, SteelOrbis learned from trade and industry circles on Tuesday, May 13.
Sources said that rebar trade prices have lost INR 600/mt ($7/mt) to INR 48,000/mt ($565/mt) ex-Mumbai and are down INR 300/mt ($3/mt) to INR 48,200/mt ($568/mt) ex-Chennai in the south.
Rebar trade prices have moved down INR 300/mt ($3/mt) to INR 44,100/mt ($519/mt) ex-Raipur and down INR 600/mt ($7/mt) to INR 43,400/mt ($511/mt) ex-Durgapur in the east.
According to the sources, while large buyers including EPC companies have had minimal presence in the market for the past few weeks, movement of stocks in retail trade is also seen to be slowing down, with buyers from sectors like real estate development reducing fresh bookings, prompting some smaller induction furnace operators in the east and west to drop prices and push sales.
“The nervousness over geopolitical tensions has eased. But this has been replaced with nervousness over the demand outlook. The sustained absence of large buyers for the past several weeks is being seen as a negative indicator of the outlook in major consumption industries,” a Kolkata-based distributor said.
“The market and prices cannot be supported solely by retail sales from fragmented and smaller consuming sectors like real estate. Expenditure by government is also seen to be slowing down, having a negative impact on demand projections,” he added
$1 = INR 84.92