The local Indian rebar market has continued its downtrend unabated with induction furnace operators forced to drop prices to push sales, while buyers have remained on the sidelines, unsure of the bottom, as demand steadily weakens with construction activities slowing down amid the spread of the monsoon weather and with flooding in several regions, SteelOrbis learned from trade and industry circles on Tuesday, July 9.
Indian rebar trade prices are down INR 600/mt ($7/mt) to INR 48,000/mt ($575/mt) ex-Mumbai and have lost INR 500/mt ($6/mt) to INR 48,300/mt ($578/mt) ex-Chennai in the south.
“The continuous declining market has put buyers and sellers in jeopardy. For sellers, they have to continuously drop prices to remain competitive. Buyers are unwilling to commit a trade today as prices will fall again tomorrow. There is no bottom in sight,” a Kolkata-based distributor said.
“Induction furnace capacity utilization is currently averaging at around 80 percent as per industry estimates, but still there is too much material chasing too few buyers. The current trend will persist for several months now,” he said.
$1 = INR 83.50