The uptrend in the local Indian rebar market has gained momentum on the back of sustained robust buying from large construction companies coupled with good restocking by traders supported by faster movement of stocks at the retail end, SteelOrbis learned from trade and industry circles on Tuesday, March 11.
Sources said that rebar trade prices are up INR 400/mt ($4/mt) to INR 49,500/mt ($567/mt) ex-Mumbai and have gained INR 700/mt ($8/mt) to INR 47,000/mt ($538/mt) ex-Chennai in the south.
Rebar trade prices have also moved up INR 100/mt ($1.50/mt) to INR 43,600/mt ($499/mt) ex-Raipur and have gained INR 200/mt ($2/mt) to INR 43,400/mt ($497/mt) ex-Durgapur in the east.
Despite the buoyant market conditions seeing sustained improvements in traded volumes and prices, a section of traders expect conditions to settle down in the coming days owing to the holidays for the Festival of Colours later this week along with logistical and transportation issues.
They said that pre-holiday restocking would ease off and the pace of construction activities will slow down as migrant labourers head home for the holidays, leading to a pause in raw material bookings by engineering procurement construction (EPC) companies which have been leading the current uptrend seen in the market.
“The holidays will trigger a pause in the rising market. Trade activity will fall but prices not so much as large buyers have become very active,” a Kolkata-based distributor said.
“However, the good market conditions are very positive for trade which can now liquidate stocks at better prices in their effort to show better cash on the books while finalising fiscal year-end accounts on March 31,” he said.
$1 = INR 87.30