Chinese rebar and wire rod export to rise again
Author: unknow
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Date:
2008-6-5
Source: Mysteel
It is reported that Chinese construction steel prices have leveled off this week and they are likely to pick up again later.
Shanghai market prices are largely unchanged.HRB335 20mm rebar is being quoted at CNY 5340 per tonne to CNY 5350 per tonne, HRB400 at CNY 5590 per tonne to CNY 5620 per tonne, flat with last week. Price for commercial wire rod remained at CNY 5800 per tonne that for hi speed material is tagged at CNY 5910 per tonne.
While rebar and wire rod prices in Beijing market have seen remarkable rebound. 6.5mm hi speed wire rod by Tangshan is being quoted at CNY 5950 per tonne a jump of CNY 350 per tonne recently. HRB335 and HRB400 16mm to 22mm rebar price move up by CNY 100 per tonne to CNY 120 per tonne to CNY 5590 per tonne and CNY 5800 per tonne respectively.
Mysteel said domestic rebar and wire rod prices are expected to see another round of increase, bolstered by robust demand, low output, increasing production cost and high international market price. Taking Shanghai price for HRB335 20mm rebar as benchmark, it is expected to approach CNY 6000 per tonne after exceeding CNY 5500 per tonne.
Export prices remain at high level and allocations are said to be quite tight. Offer for rebar with vanadium are normally at USD 1100 per tonne to USD 1140 per tonne FOB.
Sources say that Shagang has concluded 120,000 tonnes rebar exports early this month and the average contract price is USD 1000 per tonne FOB. Despite price inversion with market price it shot up its ex works price by CNY 350 per tonne due to electricity limit and maintenance in June.
(Sourced from MySteel.net)