Local Indian rebar prices have recorded gains across both major and regional trading hubs responding to the return of large construction companies confirming bookings with larger mills, but the mood among induction furnace operators regarding retail sales to small and medium-scale sectors has continued to remain cautious, SteelOrbis learned from trade and industry circles on Tuesday, December 24.
Sources said that rebar trade prices have gained INR 400/mt ($5/mt) to INR 47,300/mt ($556/mt) ex-Mumbai and are up INR 200/mt ($2/mt) to INR 46,000/mt ($541/mt) ex-Chennai in the south.
Rebar trade prices, however, have remained stable at INR 42,300/mt ($497/mt) ex-Raipur, but have recorded a gain of INR 500/mt ($6/mt) to INR 40,500/mt ($476/mt) ex-Durgapur in the east.
According to the sources, prices have moved up on the back of sentiments after large engineering procurement, construction (EPC) companies were heard to have returned to the market and confirmed some large bookings with integrated mills.
At the same time, induction furnace operators are reported to have taken a pause from aggressive discounted sales, which enabled the market to get on to a slightly more definitive uptrend even though its sustainability is still in doubt as granular demand still shows wide variations across regional markets.
“We see the latest rise in rebar prices to be driven by the sustained strength seen in the semis market and induction furnace operators have been attempting to pass on higher prices to their consumers and have been pausing discounted sales,” a Kolkata-based distributor said.
“Only a few EPC companies are active as buyers. But, overall, there is no fundamental change in the weak demand conditions and retail sales to sectors like real estate and semi-urban infrastructure continue to be low. Hence, the sustainability of the price gains is doubtful,” he added.
$1 = INR 85.10