Chinese rebar export offers continues to remain flat this week owing to ongoing Lunar New Year holidays in the country from 7 Feb to 13 Feb. Current offers for rebar from China are assessed at USD 265-270/MT, FoB main port.
Market sources strongly believe that steel prices in China have bottomed out and will stabilise in coming future.
Also Chinese government have officially made an announcement to curtail country’s crude steel production by 100-150 MnT in coming years owing to mismatch between demand and supply. In 2015, China’s crude steel output was around 803 MnT whereas its total production capacity is about 1.2 BnT.
However after the MIP imposition announced on 5 Feb’16 Indian steel participants may not show much buying interest in import offers from any country as the MIP fixed for Bar and Rod with different specifications is in the range of USD 449-455/MT. This means that rebar import below USD 449/MT will not be allowed in to India.
Meanwhile, CIS and Turkey export offers also remained unchanged this week against last week’s offers.
Global rebar offers in week 7 (7-13 Feb’15)
| Country-wise | Offers in USD/MT | W-o-W |
| China export FoB main port | 265-270 | 0 |
| CIS export FoB Black Sea | 285-290 | 0 |
| Turkey export FoB main port | 320-325 | 0 |
| UAE import CFR Jebel Ali | 325-330 | 0 |
| India (ex-works Mumbai) | 400-405 | –(10-15) |
USD 1 = INR 68.22
Source: SteelMint Research
INR depreciates US dollar
Indian Rupee today reached all time low against US dollar since last 29 months and was traded at INR 68.36/USD. This is mostly likely to impact the imported scarp offers to India.
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