Chinese rebar export offers are at USD 302.5/MT, recording a 1-month low, as Chinese currency depreciates by around 2.8% in Aug’15.
Chinese rebar export offers fell by around USD 25/MT M-o-M and by USD 10-15/MT W-o-W. Currently, Chinese rebar is at INR USD 302.5/MT, FOB. This reflects the continuous weak demand in the country’s domestic market, which is the world largest steel producer.
Steel consumption in China generally picks up in September. However, due to slowdown in the domestic market, the pick up is less likely this year, as per a media reports.
Depreciation in INR gives some relief to Indian steel producers
The recent fall in INR against USD has brought some relief to domestic steel producers since it has made imported material dearer. After devalaution of Chinese currency by around 2.8% since 7 Aug’15, Chinese rebar export offers have also fallen, but around 3% depreciation in INR during the same period has offset the concerns.
Global Rebar offers as on 31 Aug’15
|
Country-Wise |
USD/MT |
W-o-W Change |
| China export main port FOB | 302.5 | – 12 |
| CIS export FOB Black Sea | 370 | 0 |
| Mumbai 12mm basic price (E.D& other taxes extra) | 446 | + 14 |
| Turkey Export Black Sea FOB | 385 | – 10 |
| Saudi Arabia import CFR | 392.5 | 0 |
Note: 1 USD= INR 66.32
SteelMint Research
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