October 07, 2008

Chinese rebar export offer shoot up again

It is reported that construction steel export offers have been raised again by steel makers on the news that Dubai has lifted the duties on imports of steel products

Domestic market prices are largely unchanged. On Shanghai market, HRB335 20mm rebar is being quoted at CNY 4730 per tonne to CNY 4750 per tonne, HRB400 at CNY 4820 per tonne to CNY 4850 per tonne. Commercial wire rod goes at CNY 5020 per tonne, hi-speed material at CNY 5060 per tonne.

Prevailing export offers for rebar are at USD 860 per tonne to USD 870 per tonne FOB, another increase of USD 30 per tonne to USD 40 per tonne from early last week. Wire rod is being quoted at USD 880 per tonne to USD 890 per tonne FOB. Some steel makers are tagging at USD 850 per tonne FOB for material with boron.

Mysteel forecasts that in the short term, the downward correction is expected to continue. Take Shanghai price for HRB335 20mm rebar as example, the supportive level is forecasted to be at CNY 4600 per tonne, above which the upward strength is intact. Otherwise, the downward adjustment will bring price to around CNY 4300 per tonne.

(Sourced from MySteel.net)