Local Indian rebar prices have showed a mixed trend over the past week amid slightly volatile market conditions, with select regional induction furnace (IF) operators attempting to push up prices reacting to rising energy prices, with a slight softening of buying interest at higher levels, SteelOrbis learned from trade and industry circles on Tuesday, March 17.
Sources said that rebar trade prices are up INR 200/mt ($2/mt) to INR 51,000/mt ($552/mt) ex-Mumbai and have also gained INR 200/mt ($2/mt) to INR 50,000/mt ($541/mt) ex-Chennai in the south.
However, trade-level rebar prices are down INR 300/mt ($3/mt) to INR 46,200/mt ($500/mt) ex-Raipur in the central region and have lost INR 100/mt ($1/mt) to INR 46,900/mt ($508/mt) ex-Durgapur in the east.
According to the sources, there was less activity from large buyers representing engineering, procurement, construction (EPC) companies and retail buying was also moderated in a few regions by higher prices.
However, expectations of inflationary pressures building up stemming from high energy prices and shortages will keep rebar prices elevated and demand suppressed, the sources said.
“The market can be expected to remain volatile on mounting uncertainties as the war in the Middle East is prolonged. Energy supplies will continue to tighten and pressures will mount on IF operators, and cutting back output cannot be ruled out in the coming weeks,” a Kolkata-based distributor said.
“Higher energy costs will impact overall economic activity and deflate demand. But rebar prices are unlikely to decline much based on cost-push factors,” he added.
$1 = INR 92.32
