Indian domestic rebar prices in the primary market have fallen by INR 1,000 per tonne (USD 12) over the past week due to continued weak demand in the infrastructure and construction sectors, impacted by the monsoon season.
Prices for Fe 550D grade rebar, sized 12-32mm, are currently quoted between INR 54,000 and 55,000 per tonne (USD 645-660) in various cities.
Market participants report that buyers are negotiating for lower prices amidst the decreased demand and ample supply, with some primary producers willing to offer significant discounts.
In the secondary market, rebar prices have dropped by INR 200-400 per tonne ( USD2-5) over the past week. Fe500 grade rebar, sized 12-25mm, is being offered at INR 46,000-47,500 per tonne (USD 550-570) across different cities.
Spot market activity in the secondary segment remains slow, with buyers purchasing only as needed.
Next week, the government will announce the budget for the 2025 fiscal year, which is expected to prioritize infrastructure investments. Significant funding is anticipated for highways, seaports, airports, railways, urban connectivity, and smart cities.
Recently, the Gujarat state government allocated INR 1,470 crore ( USD18 million) to upgrade 688 km of road infrastructure in industrial and quarry areas. This initiative aims to improve connectivity and economic efficiency across the state, which will likely boost rebar demand after the monsoon season.
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