The extended uptrend in the local Indian rebar market has been reversed over the past week with a mild correction setting in and trade prices edging lower amid thin trading conditions and secondary mills awaiting government boosters in the form of higher project funding to drive demand, SteelOrbis learned from trade and industry circles on Tuesday, February 1.
Sources said that traded prices have lost INR 100-200/mt ($1.3- 3/mt) across regional markets with distributors and retail buyers turning cautious and preferring to await signals in the national budget on Tuesday of higher government outlays in infrastructure projects to boost economic activity and drive the next round of rebar demand.
According to sources, rebar trade prices are marginally lower by INR 100/mt ($1.3/mt) to INR 53,100/mt ($712/mt) ex-Mumbai, while down INR 200/mt ($3/mt) to INR 49,700/mt ($666/mt) ex-Raipur in the central regional market.
“The price correction is mild and was expected following consecutive weeks of gains. The market is looking for support. The immediate short-term trend will be determined by how the government budget will allocate funds to spur demand. Market participants are preferring to wait and watch,” a source at Shyam Steel, eastern India’s largest rebar producer said.
“Medium and large secondary mills have deferred monthly price revisions. Subject to the government’s increased project investments and possible fiscal incentives to real estate and construction, the mills will be looking at a significant increase in prices both to offset cost-push inflationary pressures and to improve margins,” the source said.
According to a Mumbai-based distributor, large buyers in the west and north were not following up enquiries with bookings in the week before the national budget.
$1 = INR 74.60
