Local Indian rebar trade prices have showed mixed trends attributed to regional variations in demand from construction sectors, but, given the rise in prices of semis and higher levels of demand in the approaching post-monsoon season, the outlook has remained positive, SteelOrbis learned from trade and industry circles on Tuesday, July 19.
Sources said that rebar trade prices are down INR 1,000/mt ($13/mt) to INR 54,800/mt ($685/mt) ex-Mumbai and have lost INR 500/mt ($6/mt) to INR 59,000/mt ($738/mt) ex-Chennai in the south.
Trade prices have remained largely unchanged at INR 56,000/mt ($700/m) ex-Durgapur in the east and at INR 55,300/mt ($691/mt) ex-Raipur in the central regional market.
“Prices are tending to vary based on varying demand, which in turn is different across regions owing to different levels of construction activity. Regions in the west where rainfall is heavy are slowing down construction activity, hence impacting rebar prices,” an official at the eastern region’s largest rebar producer said.
“However, we do not see any big downside risks to prices. For one, demand can only get firmer in the coming months when construction activity peaks as soon as the monsoon retreats. Secondly, prices of sponge iron and billets are performing strongly and secondary mills will continue to push up rebar prices,” he said.
$1 = INR 80.00
