A negative trend has gained momentum across the local Indian rebar market as producers and traders have stepped up stock liquidation since the monsoon rainy season is spreading across the country, leading to a slowdown in user industries like construction and rural development and housing projects, SteelOrbis learned from trade and industry circles on Tuesday, June 20.
Indian rebar trade prices have slumped INR 400/mt ($5/mt) to INR 50,800/mt ($620/mt) ex-Mumbai and are down INR 400 ($5/mt) to INR 49,800/mt ($608/mt) ex-Chennai in the south.
Rebar prices have lost INR 200/mt ($2/mt) to INR 47,600/mt ($581/mt) ex-Raipur and are down INR 400/mt ($5/mt) to INR 47,400/mt ($579/mt) ex-Durgapur in the east.
According to the sources, while trade channels have almost stopped restocking and will avoid large inventories during the three months of the lean season ahead, the pressure on the market has been aggravated by aggressive stock liquidation by producers.
“The seasonal lull in the market is expected this time of the year. What is of concern is the sustained demand depression we have seen in long products for the past several months. This makes it difficult to have a positive outlook and hopes of a rebound once the busy season starts from September onwards,” a Kolkata-based distributor said.
“Under these circumstances, the rebar market will remain volatile with prices moving sharply in either direction, which is not good for either buyers or sellers,” he said.
$1 = INR 81.90