Local Indian rebar prices have remained on a strong downtrend over the past week, amid the combined impact of secondary mills and distributors dropping prices to push sales and weak demand in the construction sector, with buyers were seen to be retreating for the festival holidays, SteelOrbis learned from trade and industry circles on Tuesday, October 21.
Sources said that rebar trade prices have declined by INR 300/mt ($3/mt) to INR 42,300/mt ($481/mt) ex-Mumbai and are also down INR 300/mt ($3/mt) to INR 43,500/mt ($494/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 600/mt ($6/mt) to INR 37.800/mt($430/mt) ex-Raipur and are down INR 500/mt ($6/mt) to INR 37,700/mt ($429/mt) ex-Durgapur in the east.
According to the sources, the retreat of buyers for the festival holidays has further aggravated the slowdown in trade activity, already reeling from weak demand, forcing both producers and distributors to drop prices to force sales.
There has been persistent weak demand and limited inquiries, and transactions for even small volumes can only be concluded at lower prices and the festival holidays mean there are even fewer active participants in the market, the sources added.
“Attributing the weak prices and market activity only to the festival holidays is missing the big picture as the basic fundamentals of the market are weak. Major buyers are unwilling to stock raw materials as construction activities are continuing but only at a slow pace. We do not see a dramatic reversal of the current trend even after the holidays,” a Kolkata-based distributor said.
$1 = INR 87.99