Local Indian rebar prices have remained unchanged during the past week with the uncertain demand profile of various user segments showing no material change and with the divergence between rebar prices of large integrated producers and those of small and medium producers persisting, SteelOrbis learned on Tuesday, January 28.
Small and medium-scale steel mills have reported very limited bookings, but have decided to maintain prices unchanged. Large integrated steel mills took a pause from increasing prices, unlike the previous few weeks, and preferred to wait and watch government allocation of funding for large infrastructure projects and a possible demand spike before taking a call on renewing a price push upwards.
Market sources said that large integrated steel mills have maintained rebar prices at INR 37,800/mt ($529/mt) ex-stockyard. However, in the western Indian market, which is seeing large project implementation and higher-volume bookings, prices are INR 1,000/mt ($14/mt) higher at INR 38,800/mt ($543/mt) ex-stockyard for branded low carbon, higher ductile earthquake-resistant rebar.
Small and medium-scale secondary steel mills have also kept prices unchanged during the past week at INR 31,900/mt ($447/mt), ex-stockyard.
“There is a cost push coupled with a demand push from large project bookings in the case of integrated steel mills, enabling them to increase prices, resulting in a wide price differential with secondary rebar producers. In the case of the latter, there is a cost push without any significant demand push from their price user segment - housing construction and retail sales,” a manager at an eastern India-based secondary steel mill said.
“The overall Indian construction sector is forecast to grow 3.16 percent and housing as a component of this will grow at a slower pace. This is not sufficient to trigger any significant demand spike for rebar, particularly for secondary steel mills,” he added.