Reinforced steel bar prices, also called rebars, have seen a price hike of ₹2,000 per tonne on the back of active buying and improved spot demand. However, if trade sources are to be believed, there has been some slowdown Wednesday onwards with limited buying in select markets but prices have been stable at around ₹53,000 – 55,000 per tonne.

Price movements over the last few days across Indian markets — Chhattisgarh, Delhi-NCR, Mumbai, etc — moved up between ₹300 and ₹1,100 per tonne on a day-to-day basis over the last few days. Weekly price rise was sharper.

Steel reinforcement bars (re-bars), find usage in construction industry and are used to improve tensile strength of concrete — since concrete has weak tensile strength.

“In some of the key markets of Chhattisgarh like Raipur and Raigarh steel prices made through the induction furnace route, which include rebars, saw a price rise of approximately ₹500 per tonne, on a day-to-day basis, in the last three-to-four days,” an industry observer told BusinessLine.

Wednesday’s decline was attributed as sellers lowered offers due to limited buying in the spot market and lower than expected enquiries. “Active buying over the last few days, demand is supposed to have softened a bit. This resulted in a slight fall in offers across major locations,” SteelMint said in a report adding that producers kept offers firm amidst adequate future bookings.

Active buying

Indian mills indicate that there have been active buying by dealers with around 6,000 tonnes being traded at Raipur earlier this week . Most buyers had been holding back on purchases because they were anticipating a “further fall in current prices”.

“Since buying was need-based and end user industry did not have many days of stock left them, it led to an increase in buying over the last few days leading to spot market price improving. But there could be future tapering off in volumes in key markets,” said a trade source.

“Even if enquiries weaken, we hope prices will remain stable, or move up,” he added.

Coal prices have also remained firm and have not witnessed much volatility over the last few days which has aided the segment.