Local Indian rebar prices have continued to show divergent trends with a negative bias in the absence of any positive drivers in the market, with some sellers attempting to push up prices but failing as buyers across sectors have been unwilling to conclude any large bookings, SteelOrbis learned from trade and industry circles on Tuesday, January 14.
Sources said that rebar trade prices are down INR 300/mt ($3/mt) to INR 47,000/mt ($543/mt) ex-Mumbai, but have remained stable at INR 45,800/mt ($529/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 200/mt ($2/mt) to INR 41,600/mt ($480/mt) ex-Raipur, but have surged by INR 1,000/mt ($12/mt) to INR 41,500/mt ($479/mt) ex-Durgapur in the east which market participants attributed to localized shortages owing to logistical bottlenecks.
“The market has no direction. There is a tussle between buyers and sellers and no one is winning. Sellers are attempting to increase prices to improve margins and, thereby, the bottom-line as the fiscal year-end approaches and books need to be closed. But there is strong buyer resistance and neither large construction companies nor retail buyers in real estate are willing to stock raw materials,” a Kolkata-based distributor said.
“However, in comparison with flat products, the long product market is showing relatively better resilience and hence large mills are pushing more long products into the market. This will increase supply-side pressure going forward, and any attempts by secondary mills to increase prices are likely to fail,” he added.
$1 = INR 86.60