Local Indian rebar prices have showed a mixed trend over the past week, with a strong negative bias as large buyers represented by engineering, procurement, construction (EPC) companies have been staying out of the market, while other buying sectors like real estate and urban infrastructure companies are seen to be reducing bookings following indications of the monsoon rains being prolonged and with traders adjusting discount levels in select regions to clear stocks, SteelOrbis learned from trade and industry circles on Tuesday, September 2.
Sources said that rebar prices have lost INR 200/mt ($2/mt) to INR 44,800/mt ($509/mt) ex-Mumbai and but have maintained INR 45,500/mt ($516/mt) ex-Chennai in the south.
Rebar prices are unchanged at INR 39,600/mt ($449/mt) ex-Raipur, but have slumped INR 500/mt ($6/mt) to INR 38,900/mt ($441/mt) ex-Durgapur in the east.
According to the sources, the usual post-monsoon revival of construction activities and the demand revival for raw materials have been delayed by late rains and flooding in several regions prompting participants in the retail segment to defer any fresh bookings for all construction grade long products.
At the same time, trade channels have been adjusting discount levels or credit terms to push volumes into the market, impacting overall prices, the sources said.
“The pace of decline in the price line has eased slightly but there are strong downside risks going forward because the withdrawal of the monsoon is being delayed and market participants are reassessing the demand forecast. Even according to the best estimates, the demand rise in the busy season ahead will be limited because of the overall bearish macroeconomic indicators in industry and manufacturing,” a Kolkata-based distributor said.
$1 = INR 88.10