Local Indian rebar prices have continued to surge, consolidating at higher levels, driven by price hikes by large integrated mills, restocking in trade channels ahead of the festival holidays and fresh bookings by engineering, procurement construction (EPC) companies, SteelOrbis learned from trade and industry circles on Tuesday, October 1.
Indian trade rebar prices are up INR 1,400/mt ($17/mt) to INR 47,100/mt ($562/mt) ex-Mumbai and have gained INR 1,300/mt ($16/mt) to INR 47,500 ($567/mt) ex-Chennai in the south.
Rebar trade prices have moved up INR 2,100/mt ($25/mt) to INR 45,000/mt ($537/mt) ex-Raipur and up INR 2,000/mt ($24/mt) to INR 43,500/mt ($519/mt) ex-Durgapur in the east.
The sources said that large mills led by JSW Steel Limited, Steel Authority of India Limited (SAIL) and Jindal Steel and Power Limited (JSPL) have hiked rebar base prices by the range of INR 1,000-1,500/mt ($12-18/mt) bolstered by the emergence of fresh bookings from large construction companies. Base prices are still far above the trade prices of distributors and are assessed at INR 50,000-51,500/mt ($597-614/mt) for delivery in Mumbai.
Sources said that the sharp rebound seen over the past two consecutive weeks was a “welcome surprise and the mood had turned from bearish to buoyant very quickly”.
The lively bookings seen both in trade channels and at the producers’ end has been driven by the optimism for a revival of large construction activities with the monsoon season ending, with there being more confidence across market participants.
“The busy season for user industries will gain momentum soon after the festival holidays and prices are expected to gain further support in the coming weeks. Certain sections of users in small and medium-scale sectors like real estate and rural construction, who are waiting for an upturn in demand, will enter the market soon to restock with raw materials and hence there are a number of positives for upside movement,” a Kolkata-based distributor said.
$1 = INR 83.80
