TMT rebar prices hit 6-month low at ₹50,000/tonne as monsoon impacts demand: Report

Prices of TMT rebars - a key construction material - has slumped to a six-month low to ₹50,000 a tonne, impacted by subdued demand and inventory in the markets, according to BigMint.

The TMT rebar prices have seen a fall of 10 per cent in the latest price correction on June 30, from ₹56,000 per tonne at May-end, and around 16 per cent from ₹60,000/tonne in April.

"Blast furnace route or BF-route rebar prices have corrected sharply and are at a six-month low," the markets research firm said in a report.

The last low was witnessed in December when TMT rebar prices were around ₹49,000/ tonne, the report said.

BigMint said the price fall is driven mainly by demand weakness and inventory overhang rather than any cost factor.

Subdued construction activity and a typical monsoon-season slowdown, with rains disrupting site work and causing contractors to delay steel purchases, led to decline in prices, it stated.

On the outlook, BigMint said over the medium term, some supportive factors could help stabilise or mildly lift prices. The offtake is expected to increase post monsoon supported by a sizeable pipeline of infrastructure and government-backed projects.

The extent of any recovery will depend on how quickly funds are released, and current inventories are worked down.

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