Indian traded rebar prices have lost ground as secondary mills have reduced prices to spur stock movements, but are facing risks of a further erosion of margins from rising fuel and energy costs, SteelOrbis learned from trade and industry circles on Tuesday, June 14.
Indian trade rebar price are down INR 1,500/mt ($19/mt) to INR 52,900 ($ 676/mt) ex-Mumbai and down INR 1,000/mt ($13/mt) to INR 53,500/mt($684/mt) ex-Raipur in the central regional market.
Rebar prices have moved down INR 2000/mt ($26/mt) to INR 55,500/mt ($710/mt) ex-Chennai in the south and have lost INR 1,000/mt ($13/mt) to INT 52,000/mt($665/mt) ex-Durgapur in the east.
According to an eastern based steel distributor while the reduction in trade price succeeded slightly improve trading activity and restocking by distribution channel partners, long term demand uptick was still being discounted as key sectors like housing construction was facing challenges of unsold ready housing units and consumer lack of confidence following rising interest rates and higher cost of borrowings.
At the same time, officials at secondary mills said that costs of fuel including electricity and coal are surging and, even though mills have been reducing prices to support stock movements, this poses huge risks to margin realizations and to maintaining the viability of the operational cost of mills.
$1 = INR 78.20
