Indian rebar prices turn volatile as buyers retreat

India’s rebar market remained volatile through the week amid cautious buying and uneven demand across regions, Kallanish notes.

Prices moved in a narrow band as traders stayed on the sidelines waiting for clearer direction.

Some stockists in western and southern regions reported sporadic enquiries, but overall activity stayed muted. “Buyers are hesitant. They are unsure whether prices have really stabilised,” says a Raipur-based trader. Weak restocking kept sentiment fragile even as mills attempted to hold their offers.

In secondary market, prices for 12-25mm (IS 1786 Fe 500D) rebar are being heard at INR 38,000-39,000/tonne ($429-440/t) ex-stockist in Raipur while primary rebar (12-32mm, IS 1786 Fe 550D) is heard around INR 44,200-45,200/t in Mumbai.

Market participants continue to debate the cause of the pressure. Many traders attribute the weakness to oversupply, particularly from secondary producers who have expanded capacity faster than demand. Others argue demand itself remains inconsistent, with central and eastern regions seeing slower execution in housing and small infrastructure projects.

“There is no single reason for this softness,” says a Mumbai distributor. “In some cities, consumption is steady. In others, enquiries stop for days.”

An analyst tracking the long steel markets points to a structural imbalance.

“India’s annual rebar supply is estimated at around 56 million tonnes, while real consumption is closer to 50–52mt. This leaves a surplus of roughly 4–6mt on a broad scale, and most of it comes from the secondary segment,” he comments. “While there won’t be 100% capacity utilisation, this surplus makes prices highly sensitive when buyers step back.”

Despite weaker demand signals, mills avoided sharp cuts this week. Higher power and raw material costs kept sellers firm, with discounts limited to prompt payment deals rather than headline reductions.

Looking ahead, market participants expect rebar prices to remain rangebound. A deeper correction appears unlikely until more mills adjust output. “Prices may fluctuate, but they will not collapse,” the Mumbai distributor adds. “Producers are defending levels, but buyers want clearer signals before committing.”

Source:Kallanish