Indian re-bar prices corrected over Rs 1,000 ($18) per tonne in last two weeks on weak demand, financial crisis and festive season.
Fall in prices have shown some resistance in last two days and most of market participants see prices bottoming out and anticipate some stability in coming time.
“Markets are extremely dull, sales have almost dried out. If market keeps on fall this way for few more days, many steel plants will have to shut their shop. We see prices stabilizing in coming days. Real problem is financial crisis, as many of us have lost capital on weak demand and not many banks are keen to finance steel sector. Where will the money come from.” said a large steel plant based in Chattisgarh.
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