Local Indian rebar prices have showed a mixed trend with wide regional variations in a market lacking direction and with a negative mood in trade channels, SteelOrbis learned from trade and industry circles on Tuesday, November 21.
Indian rebar trade prices are up INR 200/mt ($2/mt) to INR 49,200/mt ($591/mt) ex-Mumbai, but have lost INR 300/mt ($4/mt) to INR 49,000/mt ($588/mt) ex-Chennai in the south.
Rebar prices have remained unchanged at INR 44,600/mt ($535/mt) ex-Raipur, but have moved down INR 500/mt ($6/mt) to INR 44,200/mt ($531/mt) ex-Durgapur in the east.
According to the sources, despite the end of the festival holidays, market participants have not showed increased activity, while retail end-buyers from sectors like real estate developers in Tier I and Tier II urban areas have not been concluding any new bookings.
At the same time, induction furnace operators were heard to be lowering prices for large industrial buyers, but have still been unable to push large volume deals.
“The post festival hangover is a very prolonged one. It is still early to say if bearish conditions are setting in and signaling a prolonged downtrend. But the mood is negative and will need a strong external stimulus for prices to break out of the current dull movement,” a Kolkata-based distributor said.
“Many in the market are looking at the government to provide the stimulus. But it is very unlikely as there are a number of ongoing state-level elections until early next month. Soon thereafter the country will head towards national elections in 2024. The government will get into election mode and policy initiatives will take a backseat. Our assessment is that the market will remain range-bound alternating between bouts of volatility,” he said.
