Local Indian rebar prices have staged a smart recovery over the past week, with the emergence of large buyers turning active and sellers taking advantage of improved trade activity to push up offers, although a section of intermediaries have maintained a skeptical outlook expecting buyers to retreat after quick restocking, SteelOrbis learned from trade and industry circles on Tuesday, July 28.
Sources said that trade-level rebar prices have gained INR 800/mt ($8/mt) to INR 45,000/mt ($469/mt) ex-Mumbai and are up INR 400/mt ($4/mt) to INR 46,400/mt ($483/mt) ex-Chennai in the south.
Rebar trade prices have recovered by INR 800/mt ($8/mt) to INR 40,600/mt ($423/mt) ex-Raipur but are unchanged at INR 40,300/mt ($420/mt) ex-Durgapur in the east.
According to the sources, large engineering, procurement, construction (EPC) companies have been seen back in the market booking moderate volumes, which has revived market sentiments and prompted secondary mills and distribution channels to push for higher prices, easing the sustained pressures on margins observed for the past several weeks.
However, several market intermediaries said that large buyers representing EPC companies have generally entered the market, completed trades and bookings of relatively large volumes quickly and retreated, and hence their presence over the past week is unlikely to offer sustained support to prices and reverse the oversupply and weak demand over a longer period.
“The rebound is welcome as it offers a window for sellers to improve margins, which were very close to negative for the past several weeks. But sustainability is still in doubt because buying activity is not very deep. Retail activity is still low,” a Kolkata-based distributor said.
“Prices need to remain on an uptrend for two to three weeks for the market to consolidate at higher levels and absorb the excess supplies in the market,” he added.
$1 = INR 95.97
