Recently, Chinese spot rebar offers have strengthened by 5-6% owing to slight increase in demand. In addition, CISA confirms that Chinese steel consumption has declined by around 5% during Jan-June’15.
Chinese rebar offers strengthened with beginning of the Aug’15 and the domestic offers are up by 5-6% in a about a week, at CNY 2,065/MT (ex-warehouse, North China). As per the sources, the increase is owing to slight increase in demand of steel.
[su_pullquote align=”right”][su_note note_color=”#c4c4c9″ text_color=”#0b0a0a”]In July, Shanghai Futures Exchange’s most- active October rebar future had hit an all time low as it declined by 25% compared to Jan’15.[/su_note][/su_pullquote]
According to Chinese Iron & Steel Association (CISA), Chinese steel consumption has fallen by 5% during Jan-June’15 and it is likely to stay low, against the output. Chinese steel consumption in the current year is expected to be around 730 MnT, against output at around 840 MnT.
As per the India sources, few rebar mills in China are likely to receive BIS certification (which is now mandatory) to export Finish Steel to India. However, authenticity of the news has not been confirmed yet. If it happens, the domestic manufacturers in India might get hurt by the Chinese over capacity.
Global Rebar Offers
| Country-Wise | USD/MT | W-o-W Change |
| China export main port FOB | 325 | + 18 |
| China (North) domestic price | 330 | + 15 |
| CIS export FOB Black Sea | 370 | + 5 |
| Mumbai 12mm basic price (E.D& other taxes extra) | 434 | – 19 |
| Turkey Export Black Sea FOB | 395 | 0 |
| South East Asia CFR | 407 | – 5 |
Note: Prices as on 7th Aug’15
Source: SteelMint Research
Import of Bar & Rod (Alloy & Non-Alloy Steel)
| Month | Alloy Steel | M-o-M Change | Non-Alloy steel | M-o-M Change | Alloy & non-Alloy Steel | M-o-M Change |
| Dec’14 | 163,000 | 16% | 85,600 | – 14% | 248,600 | 4% |
| Jan’15 | 111,580 | – 32% | 62,300 | – 27% | 173,880 | – 30% |
| Feb’15 | 155,590 | 39% | 47,800 | – 23% | 203,390 | 17% |
| Mar’15 | 44,590 | – 71% | 42,300 | – 12% | 86,890 | – 57% |
| Apr’15 | 52200 | 17% | 58,170 | 38% | 110,370 | 27% |
| May’15 | 33,620 | – 36% | 84,770 | 46% | 118,390 | 7% |
| June’15 | 93,060 | 177% | 52,500 | -38% | 145,560 | 23% |
Source: Steel Ministry of India, SteelMint Research
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