Indian rebar prices rise on restocking, higher costs

Indian rebar prices in the secondary market have gained momentum since late last week, driven by restocking activity and rising domestic metallics prices.

Prices for 12-25mm IS 1786 Fe 500D grade rebar, produced via induction furnace, are now at INR 43,000-43,200/tonne ($500-502) ex-Raipur, marking an increase of INR 1,000-1,200/t on last week, notes Kallanish.

After nearly eight weeks of sluggish demand, stockists are replenishing their inventories.

As the monsoon season winds down and construction activity is expected to pick up in October, demand for rebar is anticipated to rise, leading to increased stockpiling, according to market sources.

A Raipur-based trader notes: “The extended monsoon delayed restocking, which typically happens in early September, pushing it to the month's end and boosting prices.”

"A strong monsoon generally leads to higher rural incomes, which results in more house-building and increased rebar demand during the winter season, contributing to the current market optimism," another trader adds.

Additionally, rising prices of domestic direct reduced iron have supported rebar price hikes, with DRI prices increasing by INR 1,000-1,300/t week-on-week across various cities.

This rise is primarily attributed to iron ore shortages, especially in the eastern region, due to heavy rains and production cuts at mills.

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/t ex-Mumbai.

Primary producers are expected to raise prices for October.