Indian rebar prices in the secondary market have seen a notable rise, driven by increased restocking activity and a surge in domestic metallics prices. The prices for 12-25 mm IS 1786 Fe 500D rebar grade 12-25 mm produced via induction furnace are currently assessed at INR 43,000-43,200 (USD 514-516) per ton ex-Raipur. This reflects an increase of INR 1,000-1,200 (USD 12-14) per ton compared to the previous week.
Following nearly two months of sluggish demand, stockists have begun replenishing their inventories. As the monsoon season comes to an end, construction activity is expected to ramp up in October, prompting further stockpiling in anticipation of stronger demand.
The extended monsoon season delayed the typical restocking period, which usually takes place in early September. This delay pushed the activity to the end of the month, contributing to the price increase. The stronger monsoon is also expected to boost rural incomes, which could result in higher demand for housing construction, further supporting the rebar market during the winter months.
In addition to the seasonal factors, rising domestic prices of direct reduced iron (DRI) have further supported rebar price hikes. DRI prices have climbed by INR 1,000-1,300 (USD 12-16) per ton w-o-w, influenced by iron ore shortages in the eastern region due to heavy rains and production cuts at mills.
Meanwhile, rebar prices in the primary market have remained stable over the past week, with 12-32mm IS 1786 Fe 550D grade rebar, produced via the blast furnace route, assessed at INR 51,000-51,500 (USD 609-615) per ton ex-Mumbai. However, primary producers are expected to increase prices in October as demand increases.
Comments
No comment yet.