Posted on 18 Apr 2024
Major Indian rebar producers have raised prices three times this month, totalling a combined INR 1,500-2,000/tonne ($18-24).
Consequently, domestic market rebar prices from primary producers are now assessed in the range of INR 53,500-54,500/t ($639-651/t), according to Kallanish.
This increase correlates with rising raw materials prices, including iron ore, scrap, and sponge iron, which have hiked by INR 500-3,500/t ($6-42/t) since the start of April.
Demand in the Indian domestic steel market has been subdued, particularly in February and March.
However, with the new fiscal year beginning in April, buyers are returning to the market for restocking, market participants report.
"India is having general elections in April and May, which is why buying was very slow in previous months, due to a lack of funding for infrastructure projects before elections. But in April, buyers usually start restocking for the monsoon season starting in June, which is why we see all products’ demand and prices going up this month,” opines a rebar manufacturer in Raipur.
He adds: "This demand will settle down in the next few weeks, and prices may see a downtrend in May. But I’m not sure if anything will happen on the global market that can keep prices up here as well”.
Another rebar producer echoes similar sentiment. He cites global uncertainties like escalating Iran-Israel tensions and a rise in prices of other metals, such as gold, aluminium and copper, as additional factors driving restocking efforts.
Along with primary producers, Indian secondary manufacturers have also increased their rebar offers in a similar range, from INR 49,000-52,500/t ($585-627).
Source:Kallanish
