December 04, 2008

Chinese rebar prices on upswing

It is reported that domestic steel prices have extended strong gains last week as 61 rebar producers lift up EXW prices, 15 of them have raise over CNY 100 per tonne. In particular, five steelmakers in North China including Shougang and Tanggang have pushed up the rebar price as much as CNY 450 per tonne within last seven days.

Moreover, 48 steel producers have also increased the EXW for rebar products. Of this, Shougang has reported a jump of CNY 500 per tonne. Domestic construction steel price has risen rapidly across major markets last week. North China market has seen an increase of over CNY 250 per tonne, while billet for making rebar has climbed to CNY 4150 per tonne to CNY 4220 per tonne in East China.

Escalating input cost and expectations for further inflation are believed to boost up the steel prices. Iron ore concentrate price has more than doubled the price of the year start to CNY 1500 per tonne in Tangshan by the end of November; coke price increased by CNY 500 per tonne from the year start; billet price rises 51% or CNY 1390 per tonne from earlier this year to CNY 4150 per tonne.

In addition, steel mills are eager to lift up EXW prices on rising anticipation about further inflation. Both buyers and traders are more willing to accept higher price at the moment.