Local Indian rebar trade prices have been able to sustain their recovery for the second consecutive week on the back of renewed bookings by large engineering procurement construction (EPC) companies and a slight improvement in movement of material in the retail trade, SteelOrbis learned from trade and industry circles on Tuesday, February 27.
Indian rebar trade prices have gained INR 500/mt ($6/mt) to INR 48,700/mt ($587/mt) ex-Mumbai and are up INR 300/mt ($4/mt) to INR 47,500/mt ($573/mt) ex-Chennai in the south.
Rebar trade prices are up INR 700/mt ($8/mt) to INR 42,900/mt ($517/mt) ex-Raipur and have gained INR 100/mt ($1.20/mt) to INR 42,900/mt ($517/mt) ex-Durgapur in the east.
According to the sources, larger integrated mills and secondary mills are heard to be attempting to push up prices supported by renewed bookings by large project construction companies and with activity at the retail trade also improving as larger real estate builders in Tier I cities have been restocking materials.
“The acute depressing mood is easing a little with buyers coming back. But the optimism is very cautious. With fundamentals of demand still weak, there is a question about how long this will sustain. Prices have fallen too sharply, buyers are returning. But we don’t think there is any significant upside potential going forward,” a Kolkata-based distributor said.
“It is still need-based buying in the market. Given the liquidity crunch faced by trade and users, no one is willing to build raw material inventories. But at the same time, any stability in the market is welcome,” he said.
“Prices are much better than last month. It will help us in reducing losses on inventory liquidation as the fiscal year comes to a close. We are keeping a close watch. But margins will still have to move up much more if any decision is to be taken on increasing our plant output levels,” an official at an eastern India-based secondary mill said.
$1 = INR 82.90
