Local Indian rebar market showed slight signs of revival over the past week with prices and trading volumes improving, but doubts persisted over potential upside as gains in prices were still very modest, SteelOrbis learnt from trade and industry circles on Tuesday, September 28.
The downtrend in rebar prices came to a halt and traded price gains ranging INR 200-500/mt ($3-7/mt) are reported across regional markets, but a large section of the market said that the price rise is too small to signify a reversal of the ‘bear market conditions’ and the rise is more in ‘nature of technical’ after an extended downtrend and had very little tailwind to gain momentum.
It was pointed out that even at current level, local rebar prices were average INR 2,000/mt ($27/mt) lower month-on-month basis and that the market will need to go through a sustained run to recover from recent losses.
Sources said that tradable rebar prices was reported at INR 48,200-50,000/mt ($653-677/mt) ex-Mumbai, up by INR 200/mt from the lower end and INR 500/mt from the upper end. Tradable price averaged around INR 49,000/mt ($663/mt) ex-Chennai in southern region.
Integrated steel mills maintained prices at INR 54,000-55,000mt ($734-747/mt) ex-works, continuing to offer discounts of INR 2,000-3,000/mt ($27-41/mt) on new bookings.
“Price increase trend is a positive. But it is not sufficient for secondary producers to start increasing plant capacity utilizations. Price increase will need to be supported by demand improvements so that average bookings and trades improve for the market to become sustainable. It is too early to make any positive forecast for the next quarter,” an official with Shyam Steel, eastern India’s largest rebar producer said.
$1= INR 73.80