Local Indian rebar prices have showed strong upsurges across most markets over the past week, barring the trading hub of Mumbai, on the back of the sharp increases effected by induction furnace operators, heavy bookings in retail trade, and the macro-level bullish outlook for construction sector demand, SteelOrbis learned from trade and industry circles on Tuesday, February 10.
In sharp contrast to the overall robust market conditions in India, Mumbai remained an outlier where rebar trade prices lost INR 800/mt ($9/mt) to INR 50,000/mt ($551/mt). While few market participants could offer any credible cause, some maintained that it could be partially attributed to localized inventory pressures.
But the overall buoyant market conditions were reflected in robust gains seen in most other trading centers. For example, rebar trade prices have surged by INR 1,200/mt ($13/mt) to INR 49,000/mt ($540/mt) ex-Chennai and have gained INR 1,300/mt ($14/mt) to INR 45,200/mt ($498/mt) ex-Raipur in the central region.
Trade prices are up INR 2,200/mt ($24/mt) to INR 45,700/mt ($504/mt) ex-Durgapur in the east.
Sources said that induction furnace operators hiked prices by INR 2,500-3000/mt ($28-33/mt) amid the faster movement of stocks in retail sales, sustained restocking by distributors and the rising prices of intermediates like sponge iron and billets.
“Apart from the aberration seen around Mumbai, the market is very positive. Stocks are moving fast and supplies are tightening. Retail sales led by sectors like real estate developers and medium-scale urban infrastructure are looking good,” a Kolkata-based distributor said.
“There is also a lot of optimism that prices will be supported and will find the next upward trajectory by incremental demand generated in the construction sector. The government committing to significant higher spending on infrastructure will have a strong positive impact with a lag,” he added.
$1 = INR 90.66
