Local Indian rebar prices have showed a slight recovery on the back of renewed offtake from large construction and infrastructure projects, but the fundamentals of the market in terms of the aggregate demand outlook have remained negative, with secondary mills in some regions continuing discounted sales for year-end considerations, SteelOrbis learned from trade and industry circles on Tuesday, February.
Indian rebar trade prices are up INR 700/mt ($8/mt) to INR 48,200/mt ($581/mt) ex-Mumbai, but down INR 300/mt ($4/mt) to INR 47,200/mt ($569/mt) ex-Chennai in the south.
Rebar prices have gained INR 300/mt ($4/mt) to INR 42,700/mt ($514/mt) ex-Raipur and are up INR 100/mt ($1.20/mt ) to INR 42,800/mt ($516/mt) ex-Durgapur in the east.
“It is not realistic to attribute the marginal gains to any improvements in fundamentals of demand. The gains are largely a correction after prices having fallen too much, too fast. A few large offtakes by large projects will not change the negative market conditions. Stock movement in retail trade channels remains very slow and secondary mills are still having to push volumes in the market at discounted prices, particularly in southern and eastern regional markets,” a Kolkata-based distributor said.
“Rebar prices will continue to move in either direction in a narrow range in the absence of any driver. Stock liquidation will remain the key focus across market participants, at least until the fiscal year-end,” he said.
$1 = INR 83.00