Local Indian rebar prices have staged a recovery over the past week on the back of the renewed strength of bookings from large construction companies and a moderate improvement in retail trade, prompting induction furnace operators to hike prices, SteelOrbis learned from trade and industry circles on Tuesday, March 3.
Sources said that rebar trade-level prices have gained INR 800/mt ($9/mt) to INR 50,200/mt ($549/mt) ex-Mumbai and are up INR 500/mt ($5/mt) to INR 49,000/mt ($536/mt) ex-Chennai in the south.
Rebar trade prices have moved up INR 1,300/mt ($14/mt) to INR 45,600/mt ($498/mt) ex-Raipur in the central region and have gained INR 800/mt ($9/mt) to INR 46,100/mt ($504/mt) ex-Durgapur in the east.
According to the sources, the recovery was triggered early in the week with the resumption of bookings reported by engineering, procurement, construction (EPC) companies, which was followed up with the return of retail buyers supporting the new uptrend.
A section of induction furnace operators took advantage of the rising market to nudge up their prices, the sources added.
However, a section of the market has cautioned that the revival of trade and prices could be tempered by the upcoming holidays for the Festival of Colours (Holi), and it is possible for the market to settle down toward the close of the current week.
“The revival of the market has been sudden and caught most of us by surprise. But there is need for caution as the trend can move in either direction. Generally, EPC buyers move in and out of the market very quickly. Retail trade is still on the weaker side in the absence of demand drivers,” a Kolkata-based trader said.
$1 = INR 91.48
