Local Indian rebar prices have showed a mixed trend over the past week with wide regional variations as rising energy costs are casting uncertainties on the operations of secondary steel mills, while there has also been a fall in bookings as pessimism over overall economic growth mounts, SteelOrbis learned from trade and industry circles on Tuesday, March 24.
Sources said that, while rebar trade prices have remained stable at INR51,000/mt ($545/mt) ex-Mumbai, they have increased by INR 1,000/mt($11/mt) to INR 51,000/mt ($545/mt) ex-Chennai in the south.
However, in regional markets like Raipur, rebar trade prices are down INR 200/mt ($200/mt) to INR 46,000/mt ($492/mt) and down INR 700/mt ($7/mt) to INR 46,200/mt ($494/mt) ex-Durgapur in the east.
According to sources, buyers across sectors are seen to be reducing bookings, fearing an overall economic slowdown triggered by energy shortages due to the war in the Middle East. The government statement on Monday that the war risked medium- and long-term negative impacts on economic and industrial growth has deepened the pessimism in the market.
“Rising costs of production coupled with an imminent demand depression under inflationary pressures are very big negatives for the market. The lack of any market direction is an indication that market participants have doubts over extending their exposure in the market,” a Kolkata-based distributor said.
“Under these conditions, businesses are unwilling to take even normal business risks. Being on the sidelines and conserving cash is the prudent option in the midst of the economic uncertainties and turmoil ahead,” he added.
$1 = INR 93.52
