Sluggish conditions have persisted in the local Indian rebar market amid thin trading conditions and the uncertain outlook even though prices have showed marginal gains in a few regions as retail buyers have been almost completely absent and even large project companies are cautious in submitting bids, SteelOrbis learned from trade and industry circles on Tuesday, March 7.
Indian rebar prices have remained unchanged at INR 56,000/mt ($684/mt) ex-Mumbai and at INR 54,000/mt ($659/mt) ex-Chennai in the south.
Rebar trade prices have recorded a marginal gain of INR 500/mt ($6/mt) to INR 50,800/mt ($620/mt) ex-Raipur in the central region and are up INR 1,000/mt ($12/mt) to INR 51,000/mt ($623/mt) ex-Durgapur in the east.
According to a Kolkata-based distributor, negative sentiments have deepened in the market in view of several lower-than-expected economic indicators announced by the government over the past week, including a sustained slowdown in manufacturing.
The distributor said that, while integrated mills are able to tide over bearish market conditions largely owing to supplies to large engineering procurement and construction (EPC) companies under long-term supply agreements, induction furnace operators are facing rising inventories amid cost escalation.
Most distributors are almost fully stocked and are unwilling to increase bookings and the price increase seen in the east in particular was attributed to “localized” reasons and stray bookings received from local government bodies.
The dull market conditions have also been attributed to the mid-week holidays owing to Holi (Festival of Colors) across the country, with several trade outlets closing down for several days.
$1 = INR 81.90
