Local Indian rebar prices have showed strong consolidation at higher levels with large integrated mills joining secondary producers in hiking long product prices, while large engineering, procurement and construction (EPC) companies have been resuming bookings even as sales at the retail end have remained sluggish, SteelOrbis learned from trade and industry circles on Tuesday, April 9.
Indian rebar prices are up INR 600/mt ($7/mt) to INR 49,900/mt ($599/mt) ex-Mumbai and have gained INR 1,300/mt ($16/mt) to INR 48,800/mt ($586/mt) ex-Chennai in the south.
Rebar prices have moved up by INR 2,700/mt ($32/mt) to INR 46,300/mt ($556/mt) ex-Raipur and are up INR 3,000/mt ($36/mt) to INR 47,000/mt ($564/mt) ex-Durgapur in the east.
Sources said that most large mills like JSW Steel, Steel Authority of India Limited (SAIL) and Jindal Steel and Power Limited have aggressively increased long product prices through the past week, having liquidated inventories from the last fiscal year and having greater control over supplies to the market.
Large construction companies are also back in the market concluding bookings of volumes higher than those heard over the past few months, thereby boosting sentiments among market participants, the sources said.
“While the recovery of the rebar market was triggered by secondary mills increasing prices, its higher consolidation is being led by large integrated mills. Pressures of oversupply seem to have eased on producers,” a Kolkata-based distributor said.
“However, retail sales to real estate developers and rural projects still remain sluggish. We feel that the price recovery is being driven by the easing of supply side pressures rather than demand improvements. Hence, we are cautiously optimistic over the sustainability of the uptrend seen now,” he said.
$1 = INR 83.30