Local Indian rebar prices have showed a mixed trend over the past week amid signs of a correction in select regional markets after recent sharp gains, but market participants have continued to maintain a positive outlook on expectations of a fresh boost expected for the construction sector in the forthcoming national budget, SteelOrbis learned from trade and industry circles on Tuesday, January 27.
Sources said that rebar trade-level prices are up INR 100/mt ($1/mt) to INR 50,100/mt ($547/mt) ex-Mumbai and have gained INR 200/mt ($2/mt) to INR 47,200/mt ($515/mt) ex-Chennai in the south.
In contrast, rebar trade prices have lost INR 500/mt ($5/mt) to INR 43,900/mt ($479/mt) ex-Raipur and are down INR 500/mt ($5/mt) to INR 43,800/mt ($483/mt) ex-Durgapur in the east.
According to the sources, the signs of a correction and the slowing pace of gains in some regions were expected after the recent surges, and buyers have just been taking a pause from fresh bookings at the higher levels.
However, most market participants have averred that the medium-term outlook is still positive as the market is looking forward to the national budget for 2026-27 to be placed before parliament next week, which is expected to commit to significant hikes in government capital expenditure on infrastructure and construction, giving a fresh boost to the recent bullish trend.
“The signals on the forthcoming budget from the government indicate that capital expenditure on infrastructure will be maintained at three percent of gross domestic product (GDP) and could even be increased to 4-5 percent. This will be a big positive driver for the construction sector and a demand boost to steel products across categories,” a steel sector analyst with a Mumbai-based financial advisory firm said.
“The slight slowdown seen during the past few days is normal after the rapid buying earlier. But stocks across the supply chain are on the lower side and, coupled with positive drivers from the government, are likely to trigger the next uptrend,” he added.
$1 = INR 91.64
