The revival in the local Indian rebar market has proved to be short-lived with prices resuming a downtrend, with secondary mills dropping prices to push higher volumes into the market, while buyers from trade channels like real estate developers and urban infrastructure construction stayed away from bulk bookings, SteelOrbis learned from trade and industry circles on Tuesday, May 23.
Indian rebar trade prices are down INR 600/mt ($7/mt) to INR 53,500/mt ($646/mt) ex-Mumbai and have lost INR 500/mt ($6/mt) to INR 52,000/mt ($628/mt) ex-Chennai in the south.
Rebar prices are down INR 400/mt ($5/mt) to INR 47,700/mt ($576/mt) ex-Raipur in the central region and have lost INR 1,000/mt ($12/mt) to INR 47,600/mt ($575/mt) ex-Durgapur in the east.
“The brief gains in prices seen earlier lacked support. There is too much supply in the market and the uptrend was reversed as bulk bookings by large construction companies dried up. Induction furnace operators are lowering prices to move large volumes to the market and ensure cash flows,” a Kolkata-based distributor said.
“The market will continue to fluctuate wildly with an overall negative bias and demand continues to be weak. In fact, we may see some more demand depression once the monsoon rains start next month, slowing down construction and housing project work,” he said.
$1 = INR 82.80