Local Indian rebar prices have continued to soften amid buyers’ resistance as indicated by some large mills partially rolling back price increases effected in the previous week, with the lack of demand and bookings not supporting any price hikes by producers, while trade channels are still saddled with large inventories, SteelOrbis learned from trade and industry circles on Tuesday, September 3.
Sources said that India rebar trade prices are down INR 100/mt ($1/mt) to INR 45,700/mt ($545/mt) ex-Mumbai and are unchanged at INR 46,200/mt ($551/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 300/mt ($4/mt) to INR 41,300/mt ($492/mt) ex-Raipur and have also moved down by INR 300/mt ($4/mt) to INR 40,600/mt ($484/mt) ex-Durgapur in the east.
The sources said that some of the large mills which had increased rebar prices by INR 750-1,200/mt ($9-14/mt) in the previous week have been forced to roll back the hikes by around INR 500/mt ($6/mt) in the face of strong resistance from buyers, with reports that some large construction companies have even sought cancellation of bookings.
“It was clearly counter-productive of producers to increase prices at a time when trade and demand are extremely weak. Moreover, this is the lean monsoon season and a time when most construction activities have been slowed down or paused and wrong timing to increase prices without a market push back,” a Kolkata-based dealer said.
“Prices have not bottomed out. Trade channels will push stock liquidation to reduce inventories and improve cash flows, which will add further pressure on prices going forward,” he said.
$1 = INR 83.90