Local Indian rebar prices have showed mixed trends in the past week, with declines being recorded in major trading hubs and stable prices in a few regional markets even as the overall market mood has remained bearish with limited trades successful with discounts or extended credit terms, SteelOrbis learned from trade and industry circles on Tuesday, July 1.
Sources said that, while prices showed losses in major centres like Mumbai and Chennai in the south, as distributors converted enquiries to sales only on confirmation of discounts, in contrast in regional markets the trend was more based on concluding sales with extended credit terms, which reflected weak market conditions even though prices showed little change.
The sources said that rebar trade prices are down INR 300/mt ($4/mt) to INR 43,700/mt ($511/mt) ex-Mumbai and also down INR 300/mt (4/mt) to INR 46,000/mt ($537/mt) ex-Chennai in the south.
However, rebar trade prices are stable at INR 40,000/mt ($467/mt) and INR 40,300/mt ($471/mt) ex-Raipur and ex-Durgapur, respectively.
“There is a lot of divergence on reported prices because even limited trade activity is being done on varied terms and conditions. Induction furnace operators are preferring discounted routes to tackle oversupply in the market. At the retail level, distributors are unwilling to sacrifice margins by dropping prices, but are forced to extend credit to conclude sales. Both indicate extremely weak demand and excess of supply in the market,” a Kolkata-based distributor said.
“Rebar prices have suffered prolonged setbacks but are yet to touch a bottom because the rainy season has lowered construction activity and there are no other positive drivers ahead,” he added.
$1 = INR 85.60