Local Indian rebar prices have showed mixed trends, with the price maintaining in one major trading hub, while recording losses in others amid the continuing strong negative mood and slack trade activity, SteelOrbis learned from trade and industry circles on Tuesday.
indian rebar trade prices have remained at INR 45,700/mt ($544/mt) ex-Mumbai, but have lost INR 200/mt ($2/mt) to INR 46,000/mt ($548/mt) ex-Chennai in the south.
Rebar trade prices are down INR 300/mt ($4/mt) to INR 41,000/mt ($488/mt) ex-Raipur and have also lost INR 300/mt ($4/mt) to INR 40,300/mt ($480/mt) ex-Durgapur in the east.
According to sources, the downtrend in prices can only be expected to gain momentum because the prolonged weak demand will be aggravated with the festive season approaching and migrant workers engaged in construction activities across the country heading home, resulting in a slower pace of project implementation and hence of raw material restocking.
Also, they pointed out that secondary mills which were forced to roll back prices earlier in the month have now once again been forced to push discounted sales to keep volumes moving in the market.
“We are not in a position to forecast any bottom of the current long downtrend. Most secondary mills have reduced plant utilization levels to 70-80 percent, but this has still failed to check oversupply in trade channels, indicating the depth of the demand depression. We are forced to keep selling at every dip in prices only to keep cash flows positive. Margins are negligible and do not cover our variable costs,” a Kolkata-based distributor said.
“Trade conditions are the worst in the regional markets which are largely dependent on retail sales to sectors like real estate and small urban development projects and no large construction projects,” he said.
$1 = INR 84.00
