The local Indian rebar market has showed signs of improvement over the past week, with prices rebounding in more regional markets, with some integrated mills increasing prices, while there has been a revival of restocking by distributors amid improved retail sales and a pick-up in construction activities, SteelOrbis learned from trade and industry circles on Tuesday, April 8.
Sources said that the only exception to the revival were prices in Mumbai in the west which have inched lower by INR 100/mt ($1.10/mt) to INR 49,400/mt ($576/mt).
In contrast, rebar trade prices are up INR 700/mt ($8/mt) to INR 48,700/mt ($568/mt) ex-Chennai and have gained INR 500/mt ($6/mt) to INR 45,700/mt ($533/mt) ex- Raipur in the central region.
Rebar trade prices have moved up INR 300/mt ($3/mt) to INR 45,800/mt ($534/mt) ex-Durgapur in the east.
According to the sources, large integrated mills have increase long product prices buoyed by active bookings received last month from engineering procurement and construction companies, supporting sellers at the retail end to quote higher prices.
“We are seeking a market break-out after a short period of lull. But we do not think it has gone through a full correction. Some volatility is expected in the short term,’ a Kolkata-based distributor said. “That is why, a major trading hub like Mumbai is quiet and in fact defying other markets. Trade will be cautious going ahead,” he added.
$1 = INR 85.80