Local Indian rebar market remained under mounting pressures of steadily weakening demand from falling construction activities and rising inventories across market participants forcing trade circles to further extend discounts and push sales, SteelOrbis learned from trade and industry circles on Tuesday, June 17.
Sources said that rebar trade price lost INR 500/mt ($6/mt) at INR 44,800/mt ($521/mt) ex-Mumbai and down INR 300/mt ($3/mt) at INR 46,700/mt ($543/mt) ex-Chennai in the south.
Rebar trade price lost INR 700/mt ($8/mt) at INR 40,800/mt ($474/mt) ex-Raipur in central region and fell INR 500/mt ($6/mt) at INR 40,500/mt ($471/mt) ex-Durgapur in the east.
The sources pointed out that while large buyers represented by engineering, procurement, construction (EPC) companies have been out of the market for past several weeks forcing large integrated mills to reduce prices, as monsoon rains lead to flooding in western and eastern regions, small users in real estate development and urban infrastructure sectors too were reducing booking, forcing induction furnace operators and distributors to also extend discounts to get confirmed bookings.
“There is not much demand across user sectors as no one is willing to stock up at a time when industrial and construction activities are being slowed down and even buyers of limited volumes deferring bookings as the market may be still some distance from a new bottom,” a Kolkata based distributor said.
“Even in market with limited transactions, trade circles are facing severe liquidity challenges as buyers are delaying clearing pending invoices against material already delivered. Small and medium sized market intermediaries are therefore not only taking a hit on margins from lower prices but also bearing costs of delayed payments,” he added.
$1= INR 86.05