The local Indian rebar market has showed a mixed trend over the past week, with marginal price losses in major trading hubs but with prices increasing in local regions amid thin trading activity as buyers await clarity in short-term trends, SteelOrbis learned from trade and industry circles on Tuesday, November 18.
Sources said that rebar trade-level prices are down a marginal INR 100/mt ($1/mt) to INR 42,600/mt ($481/mt) ex-Mumbai and are down INR 300/mt ($3/mt) to INR 43,000/mt ($485/mt) ex-Chennai in the south.
However, in contracts, rebar trade prices have gained INR 900/mt ($10/mt) to INR 38,500/mt ($434/mt) ex-Raipur in the central regional market, and similarly are up INR 800/mt ($8/mt) to INR 38,600/mt ($435/mt) ex-Durgapur in the east.
Market participants said that the divergent trend could not be attributed to definitive factors but cited multiple causes including sporadic purchases in retail trade by real estate developers, localized tightening of supplies, speculative trading by some traders, and attempts to recover higher costs of extended credit terms offers to push sales.
However, most market participants averred that trade activity fell because buyers were deferring any bookings until such time as the current divergent trend gives way to a clearer direction as the current price movement could go in either direction.
“We are not reading too much into the price gains seen in regional markets. It is unlikely to result in a more holistic uptrend across markets. Localized factors will not drive overall market dynamics. The volatility is causing nervousness,” a Kolkata-based distributor said.
$1 = INR 88.62
