The local Indian rebar market has resumed its uptrend, with prices surging following the sharp hikes announced by large integrated mills, amid the tightening of supplies and given the active restocking in trade channels, SteelOrbis learned from trade and industry circles on Tuesday, May 7.
Indian rebar trade prices have gained INR 2,000/mt ($24/mt) to INR 53,300/mt ($638/mt) ex-Mumbai and are up INR 1,500/mt ($18/mt) to INR 52,300/mt ($626/mt) ex-Chennai in the south.
Rebar trade prices have moved up INR 2,700/mt ($32/mt) to INR 48,700/mt ($583/mt) ex-Raipur and are up INR 2,000/mt ($24/mt) to INR 48,800/mt ($584/mt) ex-Durgapur in the east.
According to the sources, the market uptrend was triggered by large mills like Jindal Steel and Power Limited (JSPL), Rashtriya Ispat Nigam Limited and JSW Steel Limited aggressively hiking long product prices to the range of INR 1,500-2,000/mt ($18-24/mt) on ex-plant basis.
They said that, coupled with price increases by mills, a revival in demand has been reported from the northern and central regional markets, reflected in robust restocking by traders.
With several mills announcing maintenance shutdowns, restocking by trade channels was more on the basis of a possible tightening of supplies in May and June, the source said.
“The market trend is fluctuating very fast. The volatility is of concern. Higher price sustainability is also in doubt. Maybe it is rising too fast without fundamental demand support,” a Kolkata-based distributor said.
“I think a more cautious and realistic mood will settle in soon, replacing the current exuberance, particularly among producers,” he said.
$1 = INR 83.50
