New Delhi: This week, the Steel Rebar prices are showcasing a stagnancy in their price movement, largely due to the dwindling demand outlook from the downstream construction sectors. Market participants claim that the Rebar prices in the European market are skeptical owing to the sluggish restart in trading activity after the winter vacation. Additionally, major market players returned to the spot market by improving their purchasing prices after the New Year's holiday break. Despite some moderate deals, concern about the high prices of Steel Rebar remains a barrier for major European long-steel product manufacturers. Distributors and buyers were heard to refuse high-priced agreements with manufacturers. Steel Rebar manufacturers intend to inch up their prices but are not succeeding. Lead times persist short, whereas inventories remain medium to medium-high, with no rush to secure stockpiles.

According to our sources, the buoyant momentum of Steel Rebar that appeared in the last week of December 2022 faded early in the Q1 of 2023 amidst the inadequate downstream inquiries. The buying activity was quite slow at the end of the final quarter of 2022. Suppliers claimed that the buyers were closing deals of Steel Rebar at the ending December 2022 for January 2023. Additionally, Steel Rebar manufacturers attempted to push offers above USD 900/MT at the end of December. As the buyers were already stockpiled, the hikes in Rebar prices were fully repudiated. Thus, the Steel Rebar (8 mm) prices for Ex Ruhr (Germany) settled at USD 870/MT during the week ending January 13, largely unchanged from the last month.

Thus, ChemAnalyst forecasts that the Steel Rebar prices will remain flat throughout January 2023, while a downward correction in February 2023 prices will not be far-fetched as the demand is forecasted to remain bearish. In February, Steel Rebar can go either way; electricity and gas prices are low now, so if there is not enough demand, mills can lower the Steel Rebar price to attract more deals. As per traders, the Steel Rebar segment began progressively demanding the usual volumes for this period of the year. The construction companies are assuming that the problem of the cost of energy will be a factor in the medium term.