Local Indian rebar trade prices have showed wider variations across regions, being stable in major hubs, while sliding in other areas, in tandem with varied demand conditions and floods in southern parts of the country, SteelOrbis learned from trade and industry circles on Tuesday, September 6.
Indian rebar trade prices have remained stable at INR 55,500/mt ($695/mt) ex-Mumbai, but are down INR 1,000/mt ($13/mt) to INR 55,500 ($695/mt) ex-Chennai in the south.
Rebar prices have declined by INR 900/mt ($11/mt) to INR 50,700/mt ($635/mt) ex-Raipur in the central regional market but have been maintained at INR 54,000/mt ($676/mt) ex-Durgapur in the east.
“The revival in project construction and real estate development is very uneven across various regions. The south is impacted by heavy rains and flood conditions, forcing activities to stall and with buyers deferring bookings of raw materials,” a Kolkata-based distributor said.
“There are also expectations among buyers that induction furnace operators will lower rebar prices to pass on the benefits of the softening in prices of billets and sponge iron. Hence, trade and users are not taking a position in the market,” he said.
At least two other traders said that, with banks increasing interest rates after the hawkish stance of the central bank in controlling inflation, the cost of sourcing working capital or trade finance has increased, forcing dealers to become cautious as regards booking volumes and building inventories.
$1 = INR 79.90