The local Indian rebar market has showed mixed trends with the uptrend losing momentum in some regional markets with secondary mills reducing prices and retail buyers in the real estate sector turning cautious as regards concluding fresh bookings, with a section of industry disappointed with the national budget recently presented by the government, SteelOrbis learned from trade and industry circles on Tuesday, February 4.
Sources said that rebar trade prices have remained stable at INR 47,100/mt ($540/mt) ex-Mumbai and are also unchanged at INR 45,800/mt ($525/mt) ex-Chennai in the south.
However, rebar trade prices have lost INR 100/mt ($1.10/mt) to INR 42,000/mt ($482/mt) ex-Raipur, but are up INR 200/mt ($2/mt) to INR 42,900/mt ($492/mt) ex-Durgapur in the east.
According to the sources, trade sentiments are extremely varied across regions. A section of market players attributed the muted bookings and slowdown to a “mild correction”, while another section claimed that there is a fundamental demand weakness in key user sectors, reflected in the fact that secondary mills are not able to sustain attempts to increase prices, and there has been resistance from buyers to even small upward movements.
Some market participants are also disappointed by the national budget for 2025-26 recently presented by the government as it did not have any strong positive policy provisions that could be expected to drive demand in key sectors like housing construction.
“The market at best will remain neutral with prices moving sideways in a narrow range. Variations in the market will only be from narrow price changes by secondary mills in the absence of any demand support,” a Kolkata-based distributor said.
“Buying will be need-based as few are willing to lock up liquidity in inventories at a time when stocks are moving slowly,” he added.
$1 = INR 87.20