Local Indian rebar prices showed a mixed trend over the past week with market lacking direction amid uncertainties of seasonal demand variations across regions and mills continuing aggressive stock liquidation, SteelOrbis learned from trade and industry circles on Tuesday, June 13.
Indian rebar trade price softened INR 200/mt ($2/mt) at INR 51,200/mt ($621/mt) ex-Mumbai and down INR 500/mt ($6/mt) at INR 50,200/mt ($609/mt) ex-Chennai in the south.
However, rebar trade prices gained INR 800/mt ($10/mt) at INR 47,800/mt ($580/mt) ex-Raipur in central region and up INR 1,400/mt ($17/mt) at INR 47,800/mt ($580/mt) ex-Durgapur in the east.
According to sources, regional disparities are based on varied assessment of impact of monsoon season across regions and on key user sectors like construction and housing.
It was pointed out that forecasts of monsoon rains varied from ‘timely and normal’ to ‘delayed’ and even below normal on effect of El Nino and hence wide regional variations in demand projections of long products.
“Overall trade environment remains cautious with negative bias. Some secondary mills in the east are heard to be attempting to push up rebar prices while others in the west are aggressive in stock liquidation. Cyclone Biparjoy hitting the west coast on Wednesday also kept fresh bookings during the past week at a low level,” a Kolkata based distributor said.
“Trade price will remain range-bound and looking forward, demand revival can at best be expected from September onwards once rainy season ends and user industries picks up pace,” he said.
$1= INR 82.40