The downtrend in the local Indian rebar market has become more pronounced with prices losing ground amid a combination of falling demand, producers lowering prices to liquidate inventories, and a part of the trade channel being absent from the market due to the approach of the end of the fiscal year, SteelOrbis learned from trade and industry circles on Tuesday, March 21.
Indian rebar trade prices are down INR 1,100/mt ($13/mt) to INR 55,500/mt ($673/mt) ex-Mumbai and have lost INR 300/mt ($4/mt) to INR 53,700/mt ($650/mt) ex-Chennai in the south.
Rebar prices have lost INR 600/mt ($8/mt) to INR 50,000/mt ($605/mt) ex-Raipur in the central region and have shed INR 1,200/mt ($15/mt) to INR 50,200/mt ($608/mt) ex-Durgapur in the east.
According to the sources, while distributors had been seen to resort to discounted sales since early this month, secondary mills have also joined in offering average INR 700/mt ($8/mt) discounts to liquidate stocks ahead of the end of the fiscal year.
“There is a perfect convergence of several negatives of falling retail demand, inventory liquidation to raise cash ahead of the closure of books, and secondary mills cutting prices,” a Kolkata-based distributor said.
“Spot and retail sales are almost at a standstill. Only sales against tenders are moving in the market. We fear the market is in for a sustained bearish trend. Input costs are rising for secondary mills and hence there are stiff limits to producers continuing with discounted sales,” he said.
$1 = INR 82.60
