Indian Manufacturers Raise Re-bar Export Offers

Indian manufacturers have raised their re-bar export offers this week based on increase in ferrous scrap and billet prices in global market, according to market sources.

SteelMint learned, re-bar export prices to be in the range of USD 520-530/MT FOB by large mills on actual weight basis for bulk shipments. No deals have been seen at the new price level and sources were skeptical that any would be achieved immediately. Indian re-bars are generally exported to Singapore, Hong Kong and Myanmar.

An Indian trader said offers from mills for export have increased by USD 20-30/MT from previous base offers on actual weight basis. Traders attribute this hike to sharp increase in Chinese steel prices and narrowing price difference between billets and re-bar.

Notably Chinese re-bar prices have increased sharply in last one month owing to recent production cuts on government’s directive to curb pollution.

“Indian manufacturers have raised their export offers by around USD 20-30/MT, following domestic prices. Although no deals have been heard concluded at higher price. Indian mills would be testing domestic market before making allocations for exports.” said a trader.

Key factors driving prices

1. Rising coking coal,iron ore and scrap prices in domestic and global market.

2. Narrowing price difference between billets and re-bars in global market.

3. Absence of Chinese re-bar in global market due to better demand and prices in domestic market. Chinese domestic re-bar prices have increased by USD 70-80/MT in last one month.

4. Indian large mills have raised re-bar domestic prices by INR 500-1000/MT (USD 7.5- 15/MT) for December, which makes domestic prices at INR 34,000-34,500/MT (USD 527- 534/MT) on ex-mill basis.

5. Export offers from CIS region assessed at USD 520/MT FOB Black sea and from Turkey at USD 525/MT FOB Turkey.

Indian Bar and Rod Exports (CH 7213 & 7214) 

Quantity in MT
Source: Customs, SteelMint Research