Local Indian rebar trade prices continued to soften mainly as sellers react to localized variations in demand, SteelOrbis learned from trade and industry circles on Tuesday.
Indian rebar trade price remained stable at INR 54,800/mt ($688/mt) ex-Mumbai but sources have already been reporting INR 2,000/mt lower levels. Also prices were down INR 1,000/mt ($13/mt) at INR 58,000/mt ($728/mt) ex-Chennai.
Rebar trade price was down INR 2,000/mt ($26/mt) at INR 53,300/mt ($669/mt) ex-Raipur in central regional market. Though sources report that some sellers may provide discount of INR 2,000-2,500/mt to push volumes.
“Reemergence of discounting is largely owing to varied rainfall across region impacting demand from construction and forcing some induction furnace operators to lower price to push volumes into the market. But these localized variations will not impact outlook which remains positive as sellers are expecting strong post-monsoon demand revival from end-August,” an official with an eastern region secondary mill and largest rebar producer said.
“BF route rebar producers might be seeing a slight increase in inventories too in view of dip in project demand. But with costs of inputs like coal easing slightly over the past few weeks, producers are in better position to improve margins as soon as higher demand kicks in,” he said.
$1= INR 79.70
