Local Indian rebar prices have staged a recovery during the past week, with retail trade supported by the entry of large buyers represented by engineering, procurement, construction (EPC) companies booking moderate volumes, leading to a slight improvement in the market mood, SteelOrbis learned from trade and industry circles on Tuesday, December 2.
Sources said that rebar trade prices have gained INR 400/mt ($4/mt) to INR 43,100/mt ($481/mt) ex-Mumbai, but have remained unchanged at INR 43,000/mt ($480/mt) ex-Chennai in the south.
Rebar trade prices are up INR 500/mt ($6/mt) to INR 39,000/mt ($435/mt) ex-Raipur in central region and gained INR 700/mt ($8/mt) to INR 39,500/mt ($441/mt) ex-Durgapur in the east.
According to trade circles, while retail buying has been positive, incremental support has been offered by the return of EPC companies, which were heard to be making fresh bookings of moderate volumes.
However, a section of the market has advised cautious optimism since, as per recent trends, the activities of large buyers have been erratic in the market due to their brief presence, short buying and quick retreats, which have failed to offer sustainable support for price consolidation in the market.
“There is optimism in trade as after several weeks distributors are seeing steady purchases and bookings. Some have been quick to increase prices, seeing this as an opportunity to liquidate inventories at a good price,” a Kolkata-based distributor said.
“But we are cautious. We do not know if the positives seen over the past week will be sustained or not. Demand among users is still weak and restocking can end very quickly,” he added.
$1 = INR 89.54
