Posted on 11 Nov 2024
Indian primary rebar prices have increased by INR 1,000/tonne ($12) this week due to limited supply caused by maintenance at SAIL’s ISP plant in Burnpur, West Bengal. This supply disruption is impacting key regions, as the plant’s output typically plays a significant role in India’s eastern belt.
12-32mm IS 1786 Fe 550D grade rebar, produced through the blast furnace route, is holding at INR 55,000-56,000/t ($653-664) ex-Mumbai, notes Kallanish.
SAIL’s ISP plant, which has a capacity of 2.5 million tonnes/year, produces long products, wire rod, and structural steel. The maintenance, expected to last nearly a month from late October, has tightened rebar availability, according to industry sources.
“After the Diwali break, inquiries are slowly picking up … October was a strong month for rebar sellers, and we expect the market to gain momentum next week. Another price increase could happen by mid-November,” shares a Kolkata-based rebar trader.
In the secondary market, rebar prices have remained stable, with 12-25mm IS 1786 Fe 500D grade rebar produced by induction furnace currently priced at INR 44,000-44,500/t ($547-550) ex-Raipur.
A Mumbai trader notes: “It’s encouraging that secondary market prices are stable despite the holiday season, indicating demand from the construction sector might improve, unlike the past few months when demand was weak.”
This stabilisation in secondary market prices and anticipated primary market hikes suggest a gradual rebound in demand, with the construction sector likely to drive activity in the coming weeks.
Source:Kallanish
