India's domestic rebar prices increased this week, in line with a rise in domestic prices of hot-rolled coil (HRC).
The Argus-assessed price of rebar with 8mm-12mm thickness produced by major integrated steelmakers increased by 700-1,000 rupees/t ($10-14) from a week earlier to Rs32,900-33,200/t. Prices of rebar produced in electric arc furnaces increased by Rs500/t to Rs32,200/t.
Most major mills raised offer prices by Rs500-1,000/t to Rs34,500/t in the first week of December, but have been forced to offer discounts as buying interest was subdued at these prices.
The Argus weekly HRC assessment was up by Rs1,500/t to Rs35,500/t ex-Mumbai on 13 December.
Traders have not significantly increased their rebar purchases, limiting buying from mills to only confirmed orders from downstream customers. Most consumer purchases are being made by state-funded construction projects, but these projects are progressing slowly and demand for steel is low.
Demand may weaken further in the near term as market participants take year-end holidays and because of tight cash flow at traders and consumers.
