The revival seen earlier has proved to be a false dawn for the local India rebar market, with trade prices once again entering a freefall amid decreasing trades and the lowering of prices by medium-size induction furnace operators, SteelOrbis learned from trade and industry circles on Tuesday, April 26.
Indian trade rebar prices are down INR 1,800/mt ($23/mt) to INR 63,500/mt ($829/mt) ex-Mumbai and down INR 2000/mt ($26/mt) to INR 58,000/mt ($757/mt) ex-Raipur in the central regional market. Prices have lost INR 2,500/mt ($33/mt) to INR 63,500/mt ($829/mt) ex-Chennai in the south.
“The wild swings in prices indicate complete nervousness in the market, both among buyers and sellers, and neither have any confidence in short-term trends. This is bad for sellers and buyers as reflected in thinning trading activity,” a Kolkata-based steel distributor said.
“The failure of prices to sustain at higher levels shows the sharp resistance among buyers. On the other hand, secondary mills are struggling to recover rising costs, particularly amid the shortage and high prices of coal. The only element that can enable the support of current market conditions but is grossly missing is strong demand,” he said.
Several sources in trade circles said that, in a number of urban and semi-urban areas, construction of affordable housing (priced less than INR 750,000) has been halted by both state governments and private builders as it was not possible to keep final unit housing end prices within the category limit in view of rising construction material costs.
A section of builders and analysts forecast that construction material costs could escalate by another 9-12 percent by December 2022, and such cost increases will force builders to abort plans for the launch of new projects, with a resultant further depression in construction steel demand going forward.
$1 = INR 76.64
