September 08, 2008

Rebar market in China starts correcting

It is reported that Chinese domestic steel market prices are still on the rise except rebar and wire rod. Construction steel market has been flourishing in China since this February and export tonnages also have seen rebound. However, domestic prices saw evident decrease on the weekend signaling that Chinese domestic market is likely to start its correction in the short term.

On Shanghai market, HRB335 20mm rebar with exemption from inspection was being offered at CNY 5340 per tonne to CNY 5350 per tonne while those common products were only tagged at CNY 5220 per tonne to CNY 5240 per tonne down by CNY 150 per tonne from peak levels.

Export offer for rebar were at about USD 950 per tonne to USD 960 per tonne on FOB levels and that for wire rod at USD 970 per tonne to USD 980 per tonne on FOB levels. But transactions were concluded at USD 920 per tonne for vanadium based rebars and USD 940 per tonne for wire rods.

Tonnages have seen evident rebound and most shipments go to Asia and Middle East area. The first five destinations for rebar in March are South Korea, Hong Kong, Singapore, Angola and Cambodia. Those for wire rod are Vietnam, South Korea, Thailand, Taiwan and Philippines. Export volume is expected to see further rise for April shipment, but it also would raise the risk of another increase in export tariff by Beijing and more trade friction.

(Sourced from MySteel.net)