The local Indian rebar market has showed signs of cooling down and of an easing of volatility over the past week amid moderate trade volumes and optimism over the prospects for steady restocking in the coming months as the end of the monsoon season signals the onset of busy months for demand, SteelOrbis learned from trade and industry circles on Tuesday, August 19.
Sources said that rebar prices have edged down by INR 100/mt ($1/mt) to INR 45,800/mt ($524/mt) ex-Mumbai as the previous volatility has cooled down, while prices have remained unchanged at INR 45,500/mt ($512/mt) ex-Chennai in the south.
Rebar prices are also unchanged and stable at INR 40,000/mt ($458/mt) ex-Raipur, but have edged down INR 200/mt ($2/mt) to INR 39,800/mt ($456/mt) ex-Durgapur in the east.
According to the sources, while speculative buying was reported to be slowing down, reducing price volatility, sellers were adjusting their trade discounts and credit terms, anticipating an improvement in bookings from September onwards as users across segments commence restocking for increased activity in the coming months.
“In contrast to earlier weeks, we are seeing a more rational buying activity. It is cautious but there is optimism for an improvement ahead. The earlier volatility was not good for either the buyer or the seller,” a Kolkata-based distributor said.
“Large buyers led by engineering procurement construction (EPC) companies have taken a pause and we reckon they are reassessing their raw material inventories before returning. Smaller real estate developers are also expected to step up activities, leading to more steady movement of stocks in the market. Prices have some upside potential but at a slow pace,” he added.
$1 = INR 87.20