India's recently imposed export tariffs on bars and rods may have a limited impact on the Southeast Asia rebar market as other countries could fulfill the demand, market sources told S&P Global Commodity Insights.

          Market has been discussing the impact after India raised the export duties on bars by 15% in an attempt to lower the sharp increase in domestic rebar prices with effective from May 22.

          "I think export orders that have yet to be executed will take a huge hit, and it will be a big blow to traders, exporters, and mills," said an India-based trader.

          S&P Global Commodity Insights observed that India sold 5% of the rebar volume imported by Hong Kong and Singapore in 2020, 19% in 2021, and 12% from January to May 2022.

          Most rebar buyers in Hong Kong and Singapore citied that the Indian export tariffs on bars would likely to have a limited impact on the market, as mills in Malaysia and Vietnam could replace the Indian export volume.

          Platts assessed the CFR Southeast Asia 16-20mm diameter BS4449 grade 500 rebar at $732/mt May 25, down $12/mt from the last trading day before the notification of the India export duty on May 20.

          Domestic India rebar prices dropped further after the announcement of export duty on bars amid rising supply and weak demand.

          Export mills would possibly divert products from overseas to domestic, leading higher supply, while demand is expected to remain sluggish in India due to reduction in the construction activities ahead of the onset of monsoon season, India-based market sources said.

          Platts assessed the price of IS1786 Fe500D/Fe550D 12-25 mm diameter rebar delivered to Raipur at Rupees 54,300/mt ($700/mt) May 25, down 6% from May 20, and down 20% from a record high on March 10.