Local Indian rebar trade prices have edged lower over the past week amid dull trade conditions with few active buyers and induction furnace operators continuing to push discounted sales and distributors avoiding restocking amid a steady slowdown in the movement of stocks on extended credit terms, SteelOrbis learned from trade and industry circles on Tuesday, Wednesday, 23.
Sources said that trade-level rebar price is down INR 200/mt ($2/mt) to INR 43,100/mt ($500/mt) ex-Mumbai and has also lost a similar INR 200/mt ($2/mt) to INR 45,500/mt ($527/mt) ex-Chennai in the south.
Rebar trade prices have slipped by INR 200/mt ($2/mt) to INR 39,000/mt ($452/mt) ex-Raipur but have remained stable at INR 39,800/mt ($461/mt) ex-Durgapur in the east.
With only needs-based buying seen in the market during the current monsoon season and a slowdown across all construction activities, mills have been lowering prices and distributors either offering trade discounts or extended credit terms to be able to confirm bookings, the sources said.
“The pace of the fall in price is easing. But this is more because of minimal trade volumes and not because of any improvement in outlook. We expect rebar trade prices to move in a narrow range at least till end-October when rains across the country abates,” a Kolkata-based distributor said.
$1 = INR 85.23