The local Indian rebar market has continued to show a mixed trend with a negative bias and prices slipping in select regions, as overall buying activity has slowed down, while large mills have pushed higher volumes into the market after the recent upsurge in prices, SteelOrbis learned from trade and industry circles on Tuesday, September 19.
Sources said that trade rebar prices are down INR 100/mt ($1.20/mt) to INR 52,100/mt ($625/mt) ex-Mumbai and have shed INR 200/mt ($2/mt) to INR 51,800/mt ($622/mt) ex-Chennai in the south.
However, showing a divergent trend, rebar trade prices have gained INR 200/mt ($2/mt) to INR 47,700/mt ($573/mt) ex-Raipur in the central regional market and have gained INR 1,100/mt ($13/mt) to INR 48,100/mt ($577/mt) ex-Durgapur in the east.
“The mixed trend and some losses seen in major markets are normal as the market is reconciling to new dynamics. Demand remains strong. But, on the one hand, buyers in trade channels are getting cautious in restocking at higher price levels. On the other hand, trade prices are also reacting to increased supplies by large integrated mills,” a Kolkata-based distributor said.
“Our assessment is that prices will consolidate at higher levels as sponge iron prices are up INR 550/mt ($7/mt) and billet by an average of INR 400/mt ($5/mt) over the past week. Secondary mills will need to pass this increase on to customers. The demand rise is good to take care of the next round of price hikes by producers,” he said.
$1 = INR 83.30