Local Indian rebar prices showed a mixed trend, following attempts by some large mills to push up prices, which triggered buyers’ resistance and thin trading volumes in already weak demand from key construction and real estate sectors, SteelOrbis learned from trade and industry circles on Tuesday, August 27.
Marking an exception to overall trend, rebar trade price gained INR 700/mt ($8/mt) at INR 45,800/mt ($546/mt) ex-Mumbai, largely driven by western Indian based mill JSW Steel Limited increasing rebar price by INR 750/mt ($9/mt). However, price lost INR 800/mt ($10/mt) at INR 46,200/mt ($551/mt) ex-Chennai in the south.
Rebar trade price was also down INR 600/mt ($7/mt) at INR 41,600/mt ($496/mt) ex-Raipur but was unchanged at INR 40,900/mt ($487/mt) ex-Durgapur in the east.
According to sources, JSW Steel Limited’s hike in rebar price was followed by Steel Authority of India Limited (SAIL) and at least two other large mills.
However, most market participants averred that the price increases would be counter-productive at a time when key user sectors like real estate and large construction are keeping bookings at minimal levels and trade channels under pressure of inventories.
“We do not understand the economic logic of hiking mill price under current market conditions. It will not help in aggregate revenues of a producer as any increase in per mt margin would be negated by overall fall in volume sales. Instead, producers need to support the market more with easier sales terms like extended credit and volume based discounts,” a Kolkata based distributor said.
$1= INR 83.90
