Chinese Rebar Offers Hit All Time Low

Chromium added steel rebar offers from China at USD 340-350/MT

The Indian Rebar Market

Cheap Chinese rebar import in India is finally checked owing to the BIS compulsion imposed on them by the Indian government during Dec’14. Currently, Chinese chromium added rebar offers are in the range of USD 340-350/MT in India and only a few Chinese mills those have BIS certification, can export their material to the Indian ports. Freight rates from Chinese port to any Indian port are at around USD 8-13/MT.

Domestic market is bound to remain under pressure until the global market stabilizes. Rebar offers have been declined by up to INR 800/MT in major Indian market during the first 10 days of July’15. Currently, 12 mm rebar offers in Raipur is at INR 27,800/MT, in Mumbai at INR 28,500/MT, Hyderabad at INR 27,800/MT, Durgapur at INR 27,700/MT and in NCR/Delhi at 30,900/MT (basic price, excise duty and other taxes extra).

The Chinese Market

Shanghai Futures Exchange’s most-active October rebar future hits an all time low, at 1,891 yuan a tonne on 8 July’14. ($1=6.2097 Chinese yuan).

The rebar prices in China are rallying downwards since the beginning of July and major reason behind the fall in prices accounts to sluggish demand of steel in China. In effect, the Chinese are exploring their potential in export market. They’ve been exporting steel products to South East Asian countries like India, in order to get rid of stocks in their inventory.

China (Shanghai) Rebar and Wire Rod Offers

Note: prices as on 10 July’15