Local Indian rebar trade prices have showed a mixed trend in a market lacking direction and trade activity, though at least two large mills announced cuts in ex-works prices indicating higher inventory and supply-side pressures, SteelOrbis learned from trade and industry circles on Tuesday, July 8.
Sources said that trade-level prices are down INR 300/mt ($4/mt) to INR 43,400/mt ($507/mt) ex-Mumbai, but have remained stable at INR 46,000/mt ($537/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 600/mt ($7/mt) to INR 39,400/mt ($460/mt) ex-Raipur, but have gained INR 200/mt ($2/mt) to INR 40,500/mt ($473/mt) ex-Durgapur in the east.
The sources said that at least two large integrated mills including Jindal Steel Limited cut ex-works prices by around INR 1,000/mt ($12/mt) indicating a rise in inventory at the producers’ end.
At the same time, in major trading hubs like Mumbai, distributors were also heard to be pushing discounts, reflecting that inventory pressures were building up across market segments.
“Manufacturers and traders are either dropping prices or offering volume-based discounts to counter the steadily falling pace of stock movement. It is only a matter of time before secondary mills will go in for output cuts as the monsoon season-driven low demand is likely to extend until the end of September,” a Kolkata-based distributor said.
$1 = INR 85.71