Local Indian rebar trade prices have strengthened during the past week after secondary mills hiked prices and given improvements in stock movements, but the extent of the price rises has varied in line with the diverse region-to-region demand outlook, SteelOrbis learned from trade and industry circles on Tuesday, February 11.
Sources said that rebar trade prices are up INR 400/mt ($5/mt) to INR 47,500/mt ($543/mt) ex-Mumbai and have edged up INR 100/mt ($1/mt) to INR 45,900/mt ($525/mt) ex-Chennai in the south.
Rebar trade prices have moved up INR 700/mt ($8/mt) to INR 42,700/mt ($488/mt) ex-Raipur and have gained INR 300/mt to INR 43,200/mt ($494/mt) ex-Durgapur in the east.
Sources said that large integrated mills led by Jindal Steel and Power Limited (JSPL) hiked rebar prices early in the week, with induction furnace operators following suit.
They said that large engineering procurement and construction (EPC) companies led by Larsen and Toubro (L&T) are heard to be active in making new bookings both from large and secondary mills.
According to a Kolkata-based distributor, larger market intermediaries have been reporting a good decline in inventories over the past two to three weeks, currently down to 10-12 days, i.e., the time between new material coming into warehouse and its subsequent dispatch. He said that the faster turnaround in stocks at warehouses is benefitting distributors as it ensures better cash flows and has given confidence to conclude fresh bookings from producers.
However, according to Mumbai-based trading firm, the current uptrend is mainly being supported by active buying by large EPC companies which prefer BF rebar and, if the gains are to be sustained, retail buyers from key sectors like real estate and consumers in semi-urban areas, which depend in IF rebar, would need to become more active in their buying.
$1 = INR 87.50