The local Indian rebar market has continued to show divergent trends. Rebar trade prices have lost ground in major trading hubs like Mumbai and Chennai, while showing signs of recovery in some regional markets, SteelOrbis learned from trade and industry circles on Tuesday, May 21.
Sources said that, unlike the previous week, rebar trade prices have softened by INR 100/mt ($1.10/mt) to INR 53,200/mt ($637/mt) ex-Mumbai and are down INR 500/mt ($6/mt) to INR 52,500/mt ($629/mt) ex-Chennai in the south.
However, in contrast to the sharp declines seen in regional markets in the previous week, rebar trade prices recovered and have gained INR 800/mt ($10/mt) to INR 47,800/mt ($572/mt) ex-Raipur and are up INR 200/mt ($2/mt) to INR 47,600/mt ($570/mt) ex-Durgapur in the east.
According to sources, the lack of any definitive direction of the market has prompted buyers in retail trade to defer bookings, while large engineering, procurement and construction (EPC) companies have also remained out of the market and are not heard to be putting in bids with large integrated mills.
“The sharply varied price trends indicate a lack of any consensus on the short- and medium-term outlook for demand. The aggressive price increases by large mills without factoring in demand uncertainties have come as a shock to the market. The weekly price volatility is keeping small and medium-scale buyers out of the market,” a Kolkata-based distributor said.
“A widespread correction is on the cards. The only question is the timing of it setting in across regions. We need to be ready for a sustained weakness in the market,” he said.
$1 = INR 83.50
