Re-bar exports from India continue to increase owing to narrowing price gap between billets and re-bar in global market. Notably, billet prices have increased much faster than the re-bar prices. Market attributes this price hike to rising electrode graphite prices (which has increased 6 folds in last 2 months) and absence of Chinese billet.
Current billet prices are at around USD 490-495/MT FoB India (all exporting countries) where as re- bar export offers at around USD 505-510/MT FOB. Price gap between billets and re bar is mere USD 20/MT, which should generally be USD 50/MT.
Countries like Turkey, South Korea, Japan, Russia and Ukraine which use Electric Arc Furnace (EAF) to make billets have noticed an increment in cost of production, whereas countries which use blast furnace are immune of hike in graphite electrodes prices.
“India has now aggressively involved in the rebar exports, one of the leading privately owned steel maker has shipped around 20,000 MT to South East Asian Country around USD 505-510/MT, FoB India” as per one of the exporter based in Maharashtra, Mumbai.
Indian manufactures heard to have booked more export orders last couple of weeks at around 505-510/MT FOB India main port.
India generally does not export re-bar in large quantities but trend has been changing as since June, billet prices started increasing in global market.
Indian exports were reported at 0.648 MnT in Jun’17, out of which long exports stood at 0.203 MnT. These numbers are 8 times more as compared to same month last year.
Exports in Jul’17 were 0.77 MnT up by 19% over Jun’ 17 and were up by 64% over Jul’ 16.
Sources: JPC Data, SteelMint Research
Leave a Reply