The local Indian rebar market has continued to show a mixed trend over the past week amid a combination of some mills attempting to hike prices, but at the same time participants in retail trade in major trading centers have been showing strong resistance in a market lacking any positive drivers, SteelOrbis learned from trade and industry circles on Tuesday, September 9.
Sources said that rebar trade prices have lost INR 500/mt ($6/mt) to INR 44,300/mt ($503/mt) ex-Mumbai but are stable at INR 45,500/mt ($517/mt) ex-Chennai in the south.
However, in contrast in regional markets, rebar prices have gained INR 400/mt ($5/mt) to INR 40,000/mt ($454/mt) ex-Raipur and are up INR 650/mt ($7/mt) to INR 39,550/mt ($449/mt) ex-Durgapur in the east.
The sources said that, while a few induction furnace operators increased long product prices on the back of optimism for a demand revival in the post-monsoon period, this optimism has not been shared by market participants, particularly in the retail trade where the mood is very bearish following heavy rains and floods in some northern regions.
“We don’t think selective price rises will be sustained. Secondary mills are attempting price hikes without taking market realities into consideration. Not only will the extended monsoon season defer any demand revival, large buyers like engineering procurement construction (EPC) companies have been out of the market for the past several weeks. Therefore, with very few players active, the market cannot absorb price hikes,” a Kolkata-based distributor said.
$1 = INR 88.06
