Local Indian rebar prices have continued to move down further over the past week amid the combined impact of weak finished steel demand, logistical and transportation disruptions to trade from widespread monsoon rains, and rising inventories across the supply chain, SteelOrbis learned from trade and industry circles on Tuesday, July 14.
Sources said that rebar trade-level prices have fallen by INR 200/mt ($2/mt) to $44,300/mt ($462/mt) ex-Mumbai and are down INR 300/mt ($$3/mt) to INR 45,200/mt ($472/mt) ex-Chennai in the south.
Rebar trade prices have remained stable at INR 41,000/mt ($428/mt) ex-Raipur but are down INR 200/mt ($2/mt) to INR 40,800/mt ($426/mt) ex-Durgapur in the east.
According to the sources, the usual slowdown in construction activities across the country owing to rains has kept finished long product bookings at negligible levels. Furthermore, even the minimal trade activity for small volumes was disrupted by transportation and logistical challenges, resulting in a rise in inventories across the supply chain.
“The bearish conditions are getting aggravated by sustained negatives impacting trading, while there are no positive drivers seen on the horizon, at least not until September-October. Downside risks to prices will continue for now,” a Kolkata-based distributor said.
“Margins for secondary mills are either neutral or close to negative, particularly with the cost of production, including energy costs, rising,” a Kolkata-based distributor said.
“Trade channels are forced to either offer discounts or extended credit terms to confirm sales, leading to a serious liquidity crisis for the sellers,” he added.
