Domestic market rebar prices from primary producers are now evaluated between INR 53,500-54,500 per tonne (USD 639-651). This price hike corresponds with the upward trend in raw material costs, including iron ore, scrap, and sponge iron, which have risen by INR 500-3,500 per tonne (USD 6-42) since the beginning of April. While demand in the Indian domestic steel market was subdued in February and March, buyers are now returning for restocking with the start of the new fiscal year in April.
According to market participants, the slow buying activity in previous months was due to the general elections taking place in April and May, leading to a lack of funding for infrastructure projects. However, buyers typically begin restocking in April in preparation for the monsoon season starting in June, resulting in increased demand and prices for all products this month. Some industry insiders anticipate that this demand surge will stabilize in the coming weeks, potentially leading to a downward trend in prices in May.
Alongside primary producers, Indian secondary manufacturers have also raised their rebar offers within a similar price range, from INR 49,000-52,500 per tonne (USD 585-627).
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