Local Indian rebar prices have continued to show divergent trends with minor variations across regional markets amid stock liquidation by distributors and a negative outlook, SteelOrbis learned from trade and industry circles on Tuesday, January 21.
Sources said that, while rebar trade prices are stable at INR 47,000/mt ($543/mt) ex-Mumbai, they have edged down by INR 100/mt ($1.50/mt) to INR 45,700/mt ($528/mt) ex-Chennai in the south.
Rebar trade prices have inched up by INR 100/mt ($1.50/mt) ex-Raipur in the central region, but have lost INR 200/mt ($3/mt) to INR 41,300/mt ($477/mt) ex-Durgapur in the east.
According to sources, the market has lacked any positive drivers with large engineering, procurement, construction (EPC) companies staying away from fresh bookings from large mills, and with secondary mills and market intermediaries focusing on liquidating inventories to improve cash on books as the fiscal year-end approaches on March 31.
“Earlier, large mills followed by few secondary producers attempted incremental increase in prices. But this failed to be absorbed by the market as buyers in sectors like real estate development and semi-urban construction sharply reduced bookings. Only large government-funded projects are seen to be active buyers, but this is not sufficient to support higher levels,” a Kolkata-based distributor said.
“Price weakness will be prolonged. Trade will be more focused on liquidating stocks, even at discounts and hence pressures will sustain. Also, large user segments will await the government’s national budget next month to get an indication of government funding on infrastructure before deciding raw material restocking. The market can be expected to be range-bound in the short and medium term,” he added.