The uptrend in the local Indian rebar market has gathered pace over the past seek as both large integrated mills and induction furnace operators have hiked prices having rapidly liquidated stocks, but trade volumes are reported to be down slightly amid possible buyer resistance to higher levels and expected corrections with prices having risen too fast, SteelOrbis learned from trade and industry circles on Tuesday, January 6.
Sources said that trade-level rebar prices have recorded robust gains of INR 2,400/mt ($27/mt) to INR 49,000/mt ($543/mt) ex-Mumbai and are up INR 700/mt ($8/mt) to INR 45,700/mt ($506/mt) ex-Chennai in the south.
Rebar trade prices are up INR 1,400/mt ($16/mt) to INR 44,100/mt ($489/mt) ex Raipur and have moved up INR 300/mt ($3/mt) to INR 42,000/mt ($465/mt) ex-Durgapur in the east.
The sources said that producers, large and medium scale, were hiking prices after having liquidated stocks aggressively during the previous weeks of upward movement and anticipating that the market may be moving from oversupply to a tighter movement of stocks from mill to market.
It was pointed out that, despite all-round buying including large-volume procurements by engineering procurement construction (EPC) companies and retail sales, overall trade activity has been slightly lower.
While a section of the market maintained a bullish outlook based on revived demand across construction, another section said that some buyers have been deferring bookings owing to high prices and expectations of a correction in the short term, as prices may be moving up too fast.
“While there is a distinct possibility of a short-term correction, we do not see a significant downside from the current levels. The supply side is tightening and demand is improving both in terms of bulk and retail sales, which will provide support to the market,” a Kolkata-based distributor said.
“At the macro level, there are indications that the government will increase its capital expenditure by at least 10 percent while placing the national budget for 2026-27 next month. Higher government spending on infrastructure is good news for steel demand and consumption going forward,” he added.
$1 = INR 90.26
