The local Indian rebar market has remained on a downward trend over the past week, with setbacks in prices more pronounced in regional markets with large buyers absent, induction furnace operators forced to drop prices to push volumes in the market, and retail buyers unwilling to commit fresh bookings, SteelOrbis learned from trade and industry circles on Tuesday, May 20.
Sources said that rebar trade prices have declined by INR 200/mt ($2/mt) to INR 47,800/mt ($559/mt) ex-Mumbai and are down INR 200/mt ($2/mt) to INR 48,000/mt ($562/mt) ex-Chennai in the south.
However, the declines have been sharper in regional markets where induction furnace operators are heard to be offering varied levels of discounts if buyers settle transactions within reduced credit periods or lift material from stockyards very soon after the completion of trades.
Hence, rebar trade prices have lost INR 600/mt ($7/mt) to INR 43,500/mt ($509/mt) ex-Raipur and are down INR 800/mt ($9/mt) to INR 42,600/mt ($499/mt) ex-Durgapur in the east.
“Market concerns have shifted from geopolitical reasons to the weak demand outlook indicated by the prolonged absence of large buyers represented by engineering, procurement, construction (EPC) companies. Retail trade activity too is slowing down because of the uneven demand seen in the real estate sector. Housing construction activities are maintaining in Tier I cities but declining sharply in semi-urban areas,” a Kolkata-based long products distributor said.
“We expect short-term price volatility to continue. We fear discounting will become more widespread as stock movement slows and secondary mills grapple with inventories,” he added.
$1 = INR 85.44