The Indian local rebar market recovered with prices surging on reports of improved demand across regional markets and fresh bookings emerging from large construction projects, while retail demand from real estate development remained tepid, SteelOrbis learned from trade and industry circles on Tuesday, December 27.
Sources said that much of the nervousness over Competition Commission of India’s (CCI) investigations into alleged price collusion among secondary mills abated amid speculations that in worst case scenario, small financial penalties will be imposed on accused without any significant implication of market price movements.
Indian rebar prices gained INR 800/mt ($10/mt) at INR 53,600/mt ($648/mt) ex-Mumbai and up INR 300/mt ($4/mt) at INR 51,800/mt ($626/mt) ex-Chennai in the south.
Rebar prices spurted up sharply by INR 2,200/mt ($27/mt) at INR 49,500/mt ($599/mt) ex-Raipur in central region and up INR 2,000/mt ($24/mt) at INR 50,000/mt ($605/mt) ex-Durgapur in the east.
According to a Kolkata based distributor, while sentiments in the market improved with impact of investigations into price collusion faded, at the fundamental level demand improvements were reported particularly from eastern and northern regional markets with large private construction companies restocking raw materials as activities peak during the winter months and dry season.
“Secondary mills are planning to increase price in January and limiting pushing volumes in the market. This resulted in slight tightening of supplies enabling the market to reverse its earlier softening trend,” an official with a Kolkata based mill said.
“Prices will rise amid result of cost push from elevated inflation. The coming months are the usual season when construction activities peak because of general favourable weather conditions and hence opportune to effect a price hike,” he said.
$1= INR 82.70
