Local Indian rebar prices have showed a mixed trend amid largely subdued trading activity and the negative outlook for demand as construction activities across the country slow down owing to the monsoon rains, SteelOrbis learned from trade and industry circles on Tuesday, June 23.
Sources said that rebar trade-level prices are down INR 100/mt ($1/mt) to INR 45,600/mt ($482/mt) ex-Mumbai and are down INR 300/mt ($3/mt) to INR 45,700/mt ($483/mt) ex-Chennai in the south.
However, prices across regional markets have showed some stability, with prices unchanged at INR 41,200/mt ($436/mt) ex-Raipur and stable at INR 41,100/mt ($435/mt) ex-Durgapur in the east.
According to the sources, secondary mills are not yet offering discounts and instead are extending long credit terms, resulting in the apparent stability in prices. However, extended credit periods in lieu of discounts in the face of rising costs of production are also not sustainable as liquidity and cash flows have impacted medium and small-scale secondary mills, making the market stability very temporary.
It was pointed out that retail buyers are almost absent from the market, while large buyers from engineering, procurement, construction (EPC) companies have been resorting to only need-based bookings.
“The marginal movement in prices is not a very big positive. There are still significant downside risks as monsoon rains spreads across the country. The next two to three months will remain a lean season for the market,” a Kolkata-based distributor said.
“Secondary mills also have very little pricing power in face of rising costs. Oversupply will continue to weigh in on the price,” he added.
