Chinese Rebar Export Offers Touch 1-Year High

China’s crude steel output up by about 3% in Mar’16 Y-o-Y.

Chinese rebar export offers have been continuously moving up since the starting of Jan’16. Now, it has touched 1-year high level.

At present, Chinese rebar export offers stand at around USD 360-365/MT, FoB main port; up by around USD 20/MT in a week’s time.

Similarly, domestic/spot rebar prices for HRB 400 grade (25 mm) in Beijing up by RMB 250/MT (USD 39/MT) within a week and stood at around RMB 2,780/MT (USD 429/MT). The same grade material in Shanghai stood at around RMB 2,500/MT (USD 385/MT); up by RMB 150/MT (USD 23/MT) in the same period.

Rebar export offers in other global markets like Turkey and CIS, including UAE imported offers have also moved up by around USD 8-20/MT in a week’s time.

Today, Chinese government has released customs data that shows the nation’s crude steel output has grown by  2.9% in Mar’16 to 70.65 MnT as compared to previous year of the same month.

However in the first quarter (Jan-Mar’16) of the current calendar year, the country’s output fell by 3.2% at 192.01 MnT.

It seems that Chinese steel producers are increasing output to take advantage on the continuous rally in steel prices, especially after the Lunar New year.

While, Chinese government has already taken pledged to cut crude steel output by 100-150 MnT in the next 5 years.

Global rebar offers (11-17 Apr’16)

USD 1 = INR 66.60, USD 1 = RMB 6.4908
Source: SteelMint Research