China’s rebar offers for both domestic & export market have increased. Whereas in other global market the prices of rebar has come down by USD 30-40/MT M-o-M.
Chinese steel prices continue to remain firm over last three weeks. Whereas Chinese rebar export offers have increased by USD 5-10/MT in Jan’17, M-o-M and stood at USD 435-440/MT, FoB main port.
Meanwhile, domestic/spot rebar prices for HRB 400 (25mm) in Beijing moved up by RMB 260/MT (USD 37) in a month and traded at RMB 3,160/MT (USD 459). The same grade material in Shanghai is at RMB 3,280/MT (USD 477), which is higher by RMB 160/MT (USD 24) in same duration.
The price rise was seen in the starting of month as there was positive sentiments’ prevailing in the physical market. However, in the later part of January as it was season for new year holidays the prices of Chinese Export offers as well as the domestic market remained silent and there was minimal trade activities.
In addition, other global markets like Turkey, reported a sharp downfall in export offers by USD 40-42/MT. The reason stated by sources is the ongoing weak demand and decline recorded in import scrap prices in the Country. While, CIS export offers and UAE imported offers decreased by USD 28-30/MT in the same time period.
Global rebar offers as on 4’Feb’17
|
Country-wise |
Offers in USD/MT |
M-o-M |
| China export FoB main port | 435-440 | +10 |
| CIS export FoB Black Sea | 400-405 | -28 |
| Turkey export FoB main port | 390-400 | -40 |
| UAE import CFR Jebel Ali | 405-410 | -30 |
| India (ex-works Mumbai) | 440-450 | +27 |
USD 1 = INR 67.20, USD 1 = RMB 6.86
Source: SteelMint Research
Although, in Jan’17 India’s domestic rebar prices have seen an increase (considering montly average) of USD 15-30/MT and the offers prices assessed at USD 445-450/MT ex-Mumbai, West region (prices for 12 mm, excise duty & other taxes extra).
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