The uptrend in the local Indian rebar market has gained further momentum, with traded prices surging across all regional markets amid strong retail sales and project bookings with mid-sized mills hiking prices amid bullish sentiments riding on expectations that the national budget will allocate big outlays on construction and infrastructure projects, SteelOrbis learned from trade and industry circles on Tuesday, January 26.
The traded rebar prices have gained INR 500-1,000/mt ($7-14/mt) across all regional markets with retail sales surging as builders continue to launch new projects in all geographies, while medium-size and large mills have been reporting high-volume bookings from engineering, procurement, construction (EPC) companies.
According to sources and trade circles, rebar prices are up INR 600/mt ($8/mt) to INR 53,200/mt ($714/mt) ex- Mumbai, while they have gained INR 900/mt ($12/mt) to INR 49,800/mt ($668/mt) ex-Raipur in central India.
In the eastern regional market of Rourkela, rebar prices have gained INR 1,000/mt ($14/mt) to INR 48,700/mt ($653/mt) ex-warehouse, the sources said.
“Prices are riding on a lot of hope that the national budget to be placed before parliament will focus largely on infrastructure investments and construction to boost the overall economic activity hit by the pandemic. A much larger government fund outlay is expected by the market,” an official at an eastern India-based secondary mill said.
“The risks are that rebar prices have been surging for the past several consecutive weeks and any disappointment over the budget may trigger a very fast correction too. This is a very critical time for mills, which have just begun to increase prices and to offset rising input costs,” he said.
$1 = INR74.56
