The local Indian rebar market has lapsed into moribund conditions with sellers maintaining higher prices even as buyers particularly in the construction and real estate sectors are retreating and deferring all fresh bookings as the country is put under lockdown again, SteelOrbis learned from trade and industry circles on Tuesday, April 20.
Sources said that, unlike last year when a national lockdown was imposed uniformly across the country, over the past week different states and local authorities have been imposing lockdowns with differing restrictions on people, industry and trade, leading to more uncertainties for both buyers and sellers with a multi-locational presence.
However, despite almost negligible trading activities across the worst-affected regions like west, north and central India, both primary and secondary rebar producers have maintained higher prices at unchanged levels, following base price revisions earlier in the month.
The sources said that integrated steel mills have maintained base prices in the range of INR 52,000-53,000/mt ($694-708/mt) ex-works, with the tradable ex-Mumbai price assessed to be at a similar level.
Secondary steel mills have also maintained higher base prices of around INR 49,000-50,000/mt ($654-668/mt) ex-works, with some reports indicating some small-volume deals in the east being concluded at a discount.
“The pandemic and restrictions on people and industry are still folding. Disruptions to major sectors like construction and real estate are still developing and the full picture of the situation can emerge only after a few weeks. But sentiment is very fearful and no consumer is willing to take risks of committing bookings and cash outflow under the present situation,” an official with a leading Kolkata-based real estate developer said.
“Migration of labor force out of the worst-affected regions is beginning. Shortage of workforce will emerge in the construction and real estate sectors with a lag. Raw material restocking is not a priority for anyone. We are all on wait and watch with a negative outlook,” he added.
$1 = INR 74.90
