In Feb’17, rebar export offers have increased by USD 10-20/MT by major exporting Countries like China, Turkey & CIS nation.
The prices surge as the construction activities in China has picked up. As per sources, Chinese domestic prices are approximately USD 80/MT higher and so the local mills in China are not ready to lower the export offers.
During the month China’s export offers gain by USD 17/MT to USD 450-460/MT, FoB main port. While, domestic offers surge by RMB 670/MT (USD 95) and stood at 3,830/MT (USD 555) in Beijing. The same grade material in Shanghai is at RMB 3,720/MT (USD 540); higher by RMB 470/MT (USD 68) in same duration.
The market participants are expecting the log steel prices to be firm but the Chinese government might crack down on mills that produce substandard steel.
Following the price surge by China and sharp hike in raw material (scrap & billet) prices, other major countries also increased rebar export prices; Turkey increased by USD 15/MT and stood at USD 430-435/MT FoB. CIS (FoB Black Sea) offers hiked by USD 12/MT and assessed at USD 425-435/MT.
Similarly, UAE import prices also registered a sharp hike of USD 30/MT and prevailing at USD 435-440/MT CFR Jebel Ali.
Global rebar offers as on 01 Mar’17
|
Country-wise |
Offers in USD/MT |
M-o-M |
| China export FoB main port | 450-460 | +17 |
| CIS export FoB Black Sea | 425-435 | +15 |
| Turkey export FoB main port | 430-435 | +20 |
| UAE import CFR Jebel Ali | 435-440 | +10 |
| India (Ex-Mumbai) | 465-470 | +20 |
USD 1 = INR 66.8, USD 1 = RMB 6.89
Source: SteelMint Research
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