Chinese wire makers Shift to Rebar Production
The manufacturers of wire in China have starting shifting and started to produce rebar in coils. Even the makers of hot rolled coils and plates are also making rebar as the price of rebar is higher than H-steel because there is shortage of rebar in the country due to elimination of steel made from scrap metals.
The increased demand of rebar in the country, made the manufacturing lines change of production from wire to rebar at the maximum capacity. According to a wire manufacturer, “The price rise due to high demand of rebar has made us make rebar . The quantity of rebar that was sold in a month is being sold in a day.”
Electric Furnaces gaining importance in China
The construction of electric furnaces in China have increased drastically after some of manufacturing units (medium sized furnace and the induction furnaces) were stopped by the government, shifted to electric furnace facility.
The pollution level from the electric furnaces is less than the other furnaces which is a good step towards the protection of environment.
Electrode bars is main raw material required in the making of steel in the electric furnace. The shortage of electrode has made its prices jump twice or even thrice. The raw materials required to make electrode bars are mainly from India. The steel makers in Asia mostly use the China made firebricks in their electric furnace, with the Chinese domestic market facing shortage it may hamper the production from electric furnaces all over Asia would be a big factor.
Supply crunch push billet export offers
The closure of the major manufacturing units with production of 40 MnT has also effected the availability of billets, the prices of billets have already increased in Asia.
Scrap Prices to reach Sky High
The price of scrap is expected to be at a higher side. Turkey scrap prices are expected to increase further owing to rising steel demand.The HMS prices in Turkey are at USD 297/MT CFR Turkey, showing an upward movement as compared to month earlier price at USD 273/MT CFR Turkey.
The offers in India are said to be at USD 310-315/MT and HMS 1&2 (80:20) at USD 285-290/MT CFR India.
Leave a Reply