Posted on 16 Oct 2024
Indian domestic rebar prices, particularly in the secondary market, have paused their upward trend this week, Kallanish notes.
This comes as stockists and market participants opt for a wait-and-see approach, closely monitoring developments in China’s steel market.
Rebar prices in the secondary market have dipped marginally, by INR 300-500/tonne ($4-6) on a weekly basis.
12-25mm IS 1786 Fe 500D grade rebar, produced via the induction furnace route, is now priced at INR 46,000-46,200/t ($547-550) ex-Raipur, Kallanish assesses.
A Raipur-based rebar manufacturer remarks: "After three weeks of rising prices, we have seen a slight correction. Although demand from the construction sector has improved compared to last month, factors like the festive season, liquidity issues, labour shortages in some states, and volatility in China's steel market have made buyers more cautious."
A rebar trader adds: "With sufficient restocking done and domestic DRI and scrap prices falling, buyers are now taking a step back to assess the situation. Domestic iron ore prices continue to rise, but with low export demand from China, the market remains in a holding pattern. Despite this, there is optimism that a significant downturn in prices is unlikely."
In the primary rebar market, prices remain stable on week. 12-32mm IS 1786 Fe 550D grade rebar, produced via the blast furnace route, is assessed at INR 54,000-55,000/t ($645-655) ex-Mumbai.
Supply shortages caused by the closure of RINL’s blast furnace have supported prices. Distributors in the primary market expect values to remain supported in the coming weeks, driven by rising demand and limited supply.
Source:Kallanish
