The local Indian rebar market has showed recovery in the past week, with induction furnace operators withdrawing discounted sales and with a slight improvement seen in offtake from retail trade channels, although the medium-term outlook remains uncertain, SteelOrbis learned from trade and industry circles on Tuesday, December 12.
Indian rebar trade prices have gained INR 900/mt ($11/mt) to INR 49,100/mt ($589/mt) ex-Mumbai and are up INR 700/mt ($8/mt) to INR 49,000/mt ($588/mt) ex-Chennai in the south.
Rebar trade prices are up INR 1,000/mt ($12/mt) to INR 44,200/mt ($530/mt) ex-Raipur and have gained INR 1,200/mt ($14/mt) to INR 44,200/mt ($530/mt) ex-Durgapur in the east.
“Secondary mills have been dropping prices too fast and this was not sustainable amid rising costs. They have pulled back discounted sales leading to a slight recovery in trade prices. But we are still not in a position to increase ex-mill prices as trade volumes are still very dull,” a source at Shyam Steel Limited, eastern India’s largest rebar producer, said.
“There are still a lot of regional variations in demand and acceptable prices. Both producers and traders are facing higher costs of funds from lending institutions at a time when stock movement is slow and the resultant impact on the cash flow situation,” he said.
According to a Kolkata-based distributor, a sustainable revival of market conditions is being discounted largely because of political uncertainties as national elections approach next year and government spending tapers off as the fiscal year draws to a close.
He said that procurement against government-funded projects will slow down too from a lack of sufficient funding, and this would impact the tender-based sales of large integrated mills.
$1 = INR 83.40
