Chinese Rebar Export Offers Up USD 8/MT W-o-W

Chinese rebar export offers increased by 80% since the starting of Jan’16.

Chinese rebar export offers are hovering in the range of USD 455-460/MT, FoB main port, increased by USD 8/MT W-o-W owing to price rise in the domestic market.

Meanwhile, domestic spot rebar prices for HRB 400 grade (25 mm) in Beijing have also increased by RMB 250/MT (USD 36) within a week and stood at RMB 3,280/MT (USD 471).

Similarly, the same grade material in Shanghai was firm at RMB 3,420/MT (USD 492); up by RMB 140/MT (USD 20) in the same duration.

China the world largest steel producer has set the target to cut the steel capacity by 45 MnT in 2016 in order to deal with excess capacity. It has over-achieved the target and have cut their steel capacity to almost 88 MnT so far, as reported by the market.

Since the beginning of Jan’16, rebar export offers in China was in the range of USD 250-255/MT which is now around USD 455-460/MT. The difference in price from Jan’16 till now has increased by 80%.

On the similar line, other global markets reported increase in rebar offers – CIS offers have risen by USD 4/MT, While Turkey export rebar offers remain steady at USD 433-438/MT.

Global Rebar Offers in Week 51 (12-18 Dec’16)

USD 1 = INR 67.77, USD 1 = RMB 6.95
Source: SteelMint Research