The local Indian rebar market has showed signs of a revival with prices gaining ground across a wide range in various regional markets, although buyers have remained cautious resulting in restricted trading conditions, SteelOrbis has learned from trade and industry circles on Tuesday, December 14.
The secondary mills are attempting to push up prices and pulling back discounts to improve realizations, with the highest gains reported from central regional markets around Raipur.
According to sources, rebar prices have increased by a wide range of INR 400-2,000/mt ($5-26/mt) across various regional markets.
Rebar prices have moved up to INR 49,500/mt ($653/mt) ex-Mumbai, up INR 750/mt ($10/mt) from a week ago. The highest surge was reported from Raipur in the central region where rebar prices have been reported at INR 46,200/mt, ex-warehouse, a gain of INR 2,000/mt ($26/mt) from a week ago.
Integrated steel mills have maintained base prices at INR 56,000-58,000/mt ($739-765/mt), but have continued to confirm bookings with discounts above INR 4,000/mt ($52/mt), sources said.
“Trade discounting by secondary steel mills is narrowing on the return of more buyers in the market, but volume trades are still on the lower side. There is some optimism on bookings in the last quarter of the fiscal year and also on higher retail sales as real estate developers attempt to complete ongoing projects before the end of the year,” a source at Shyam Steel, eastern India’s largest rebar producer, said.
“But for the rebar market to consolidate, rebar prices have to sustain over at least a quarter for secondary mills to be able to increase plant output levels which are still averaging around 75-80 percent,” the sources said.
$1 = INR 75.77
