Emergency restrictions in India reduce rebar price premium over billet

Restrictions on construction activity in some parts of India have created pockets of oversupply in rebar and have squeezed the margin between the prices of domestic rebar and billet in the country, sources told Metal Bulletin on Friday November 17.

India’s government restricted construction activity in Delhi earlier this week after thick smog engulfed some northern parts of the country, leading to a halt in the rebar trade in the region and a blockade that affected thousands of trucks trying to enter the capital city, according to sources. “People have a lot of rebar stock due to less offtake, and [there is] less demand in the market,” one trading source said. “Construction sites stopped [work] so, ultimately, we need to push the material at lower prices to other areas of India,” one rebar seller said. This would be difficult, however, as the markets in the country’s various regions tend to operate independently of one another, despite the imposition of the national Goods & Services Tax (GST)...

Published

Lee Allen

November 17, 2017

14:42 GMT

London