The downtrend in the local Indian rebar market has gained momentum with trade channels dropping prices due to the slowdown in procurement by large projects, while trade activity in general has remained slow owing to the extended weekend due to festival holidays, SteelOrbis learned from trade and industry circles on Tuesday, March 26.
Indian rebar trade prices have lost INR 400/mt ($5/mt) to INR 49,000/mt ($589/mt) ex-Mumbai and are down INR 200/mt ($3/mt) to INR 47,300/mt ($569/mt) ex-Chennai in the south.
Rebar trade prices are down INR 300/mt ($4/mt) to INR 42,700/mt ($513/mt) ex-Raipur and have remained unchanged at INR 43,000/mt ($517/mt) ex-Durgapur in the east.
The sources said that as expected large projects particularly those funded by the government have been slowing down their activities, reacting to the tightening of funds from the government at the fiscal year-end, and with the political uncertainties in the run-up to the national elections prompting the mood in the market to become more negative.
“The deepening of the bearish trend is working out as anticipated from the combination of year-end considerations, the slowdown in construction activities both for projects and real estate development, and political uncertainties of elections. We are looking at a sustained downturn as users are in no mood to increase commitments, while induction furnace operators are combining output cuts with dropping prices, attempting to balance the supply side amid weak demand,” a Kolkata-based distributor said.
“Prices will remain at the current low levels, very much near a bottom as we do not think mills can increase discounting of sales without margins moving into negative territory,” he said.
$1 = INR 83.20
