Local Indian rebar prices have continued to decrease over the past week, with the biggest setbacks seen in the main western trading hub as both secondary mills and market intermediaries have been resorting to dropping prices and pushing discounted sales due to a demand depression and pressure from inventories, SteelOrbis learned from trade and industry circles on Tuesday, May 5.
Sources said that rebar trade prices have slumped by INR 1,300/mt ($14/mt) to INR 49,000/mt ($515/mt) ex-Mumbai in the west and have lost INR 300/mt ($3/mt) to INR 51,500/mt ($541/mt) ex-Chennai in the south.
Rebar trade prices are down INR 100/mt ($1/mt) to INR 46,000/mt ($484/mt) ex-Raipur and have softened by INR 300/mt ($3/mt) to INR 45,100/mt ($474/mt) ex-Durgapur in the east.
According to the sources, mills and trade channels have been forced to push discounted sales as there have been virtually no bookings at listed prices at a time when inventories across supply chains are on the rise.
Furthermore, elections across five states over the past week also prompted traders and retail buyers to defer even need-based bookings, the sources added.
“Without any positive drivers on the horizon, we expect the entire finished steel category to remain volatile in the coming days and weeks. Producers are facing rising costs of production. At the same time, discounting has become the norm to conclude sales. Hence, margins are under severe strain,” a Kolkata-based distributor said.
$1 = INR 95.09
