Chinese rebar export offers have touched an all time low at USD 252/MT, FoB main port.
Chinese export rebar offers continue to fall further in the current week by USD 3/MT. Presently, it stand at USD 253/MT, FoB main port.
Market participants say that it seems trading in export market will remain low till the Chinese authorities give any signals to abolish rebate on specific rebar products in the new year, 2016. Currently, Chinese export of steel products alloyed with just 0.3% of chromium get a tax rebate of 9-13%.
Meanwhile, CIS export rebar offers also fell by USD 3/MT W-o-W and stand at USD 287/MT, FoB Black Sea. While, offers in Turkey export market including UAE imported offers remained stable in the same period.
Global rebar offers in week 51 (14-20 Dec’15)
| Country-wise | Offers in USD/MT | W-o-W |
| China export FoB main port | 252 | -3 |
| CIS export FoB Black Sea | 287 | -3 |
| Turkey export FoB main port | 335 | 0 |
| UAE import CFR Jebel Ali | 342 | 0 |
| India (ex-works Mumbai) | 383 | 0 |
USD 1 = INR 66.30
Source: SteelMint Research
INR likely to trade within 68-70 against USD
Most of the analysts said that INR may hover in the range of 68-70 against USD in CY16. Indian currency has depreciated by 5% against USD in 2015 (till 18 Dec’15).
The sharp depreciation in the currency will largely be related to global factors. Advanced economies like the Euro zone and Japan are still struggling to come out of deflationary pressures.
INR depreciation in 2015 and 2014
| Year | On 1 Jan’15 | On 18 Dec’15 | % Change |
| 2015 | 63.04 | 66.28 | -5% |
| 2014 | 61.83 | 62.99 | -2% |
Value in INR/USD
Source: SteelMint Research
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