Chinese Rebar Export Offers Fall Slightly W-o-W

Chinese rebar export offers down by USD 2/MT W-o-W on weak demand; Chinese PMI fell to a six-and-a- half-year low in Aug’15.

China, the world’s top steel producer, is facing a slowdown in the domestic market and dwindling exports led to fall in steel prices. Export offers for Chinese rebar have fallen by almost USD 10/MT since the starting of the current month and a slight fall by USD 2/MT was witnessed in the current week.

The most active January rebar contract on the Shanghai Futures Exchange touched 2,020 Yuan/MT (USD 315.75/MT) on thursday, its lowest since 23 July’15, as per a media report.

Safeguard Duty: Indian government is looking to impose safeguard duty on steel import from China and other countries, especially on flat steel products. Director General of Foreign Trade (DGFT) is investigating the harm to domestic manufacturers due to imported steel. Rebar import to India from China and other countries is low due to BIS norms. However, two Chinese origin companies have already received BIS certification to export steel under IS 1786 non-alloy steel.

Chinese manufacturing index falls to six-and-a- half-year low in Aug’15

Chinese manufacturing activity dropped to a six-and-a-half-year low in August, as per data shown by a private survey. The data reflects domestic and export demand dwindling, which is a worry for the Chinese economic growth.

The preliminary reading of Markit/Caixin China Manufacturing Purchasing Managers’ Index (PMI) stood at 47.1 in August on a 100 point scale. It was 47.8 in July. A figure above 50 indicates growth, below 50 is signal of contraction.

PMI is a key barometer of the country’s economic conditions which tracks activities in workshops and factories.

Global Rebar offers as on 22 Aug’15

Note: 1 USD= 65.86