Local Indian local rebar trade prices have showed mixed trends, continuing to mark losses in major markets but gaining in regional centers, amid the bearish outlook and the near halt in bulk bookings resulting in scattered discounting sales by trade channels, SteelOrbis learned from trade and industry circles on Tuesday, April 18.
Indian rebar trade prices are down INR 400/mt ($5/mt ) to INR 54,600/mt ($666/mt) ex-Mumbai and are down INR 300/mt ($4/mt) to INR 54,000/mt ($659/mt) ex-Chennai in the south.
However, rebar prices have marked gains in regional markets, moving up INR 800/mt ($10/mt) to INR 50,900/mt ($621) ex-Raipur and are up INR 1900/mt ($23/mt) to INR 51,700/mt ($630/mt) ex-Durgapur in the east.
“Weather conditions across the country have forced large buyers to reduce restocking and hence the fall in bulk bookings. Heat wave conditions had resulted in a shortage of workers and a slowdown in construction activities across the north and east,” a Kolkata-based distributor said.
“Even going forward, there are fears of a shortfall in monsoon rains from July onwards. Any fall in rural income and demand will further slow down rural construction activities,” he said.
However, at least some producers have been taking their cue from a gain in some regions to maintain a more positive outlook.
“We expect positive gains to consolidate and spread. There is a spate of regional elections ahead and there will be political compulsions in hastening up the completion of ongoing projects by incumbent governments. This will improve demand,” an official at an eastern region-based secondary mill said.
“Prices of semis too are rebounding and secondary mills will have to pass this on to consumers of finished long products,” he said.
$1 = INR 82.00