October 14, 2008

Chinese rebar and wire rod export offers continue to move up

It is reported that export offers for rebar and wire rod have been increased recently reflecting the rise in Chinese domestic prices and the booming international market. The increasing production cost and short supply in China is expected to further bolster the increase of export prices.

On shanghai market, commercial HRB335 20mm rebar is being quoted at CNY 4940 per tonne to CNY 4950 per tonne, HRB400 grade rebar goes at CNY 5010 per tonne to CNY 5030 per tonne. Commercial wire rod is tagged at CNY 5130 per tonne and hi speed material at CNY 5140 per tonne to CNY 5160 per tonne. HRB335 20mm rebar price is forecast to approach CNY 5100 per tonne CNY 5200 per tonne or even higher soon as long it remains above CNY 4900 per tonne.

Export quotation for rebar has been prevailing at USD 910 per tonne to USD 930 per tonne FOB and the highest even have jumped to USD 960 per tonne to USD 970 per tonne FOB. Laiwu Steel has shoot up rebar export quotation to USD 1000 per tonne CFR or shipment to South Korea ends May or early June shipment.

According to trading sources rebar export contracts are said to be picking up for delivery to Middle East, but the latest transaction price is merely between USD 860 per tonne to USD 870 per tonne FOB. In general, export tonnages are anticipated to rebound in the next two to three months.

Offer for wire rod is prevailing at USD 960 per tonne to USD 970 per tonne FOB and it is expected to reach USD 1000 per tonne FOB in the near future. The export volume to the EU and Middle East market is reported to be on the rise.

(Sourced from MySteel.net)