Local Indian rebar market continued to robust consolidation at higher levels amid all round buying from across user sectors and tightening of supplies from induction furnace operators, SteelOrbis learned from trade and industry circles on Tuesday, December 30.
Sources said that traded rebar levels surged INR 1,300/mt ($14/mt) at INR 46,600/mt ($518/mt) ex-Mumbai and up INR 1,200/mt ($13/mt) at INR 45,000/mt ($501/mt) ex-Chennai in the south.
Traded price levels gained INR 2,000/mt ($22/mt) at INR 42,700/mt ($475/mt) ex-Raipur and up INR 1,900/mt ($21/mt) at INR 41,700/mt ($464/mt) ex-Durgapur in the east.
According to the sources, all round buying was reported across all markets by large buyers from engineering procurement construction (EPC) companies, which were placing bookings with large integrated mills. Retail buying was also active, enabling induction furnace operators to liquidate stocks at higher price levels sustaining since the last two weeks.
Inventory pressures has been significantly reduced and if current sharp uptrend is maintained, the market is likely to shift to a tight supply situation enabling further consolidation.
“The sustained buying seen over the past two consecutive weeks from every user sector is a positive and we expect the momentum to sustain as orders are pouring in and supplies can be expected to tighten going forward,” a Kolkata based distributor said.
$1= INR 89.89
