Chinese rebar export prices increase
Chinese rebar producers have raised export prices in tandem with domestic prices, mill and market sources tell Steel Business Briefing. Eastern China's Shagang is offering $480-485/tonne
($498-501/t) fob for vanadium-added rebar, while Chengde Iron & Steel in northern China is quoted at about $495/t fob for similar materials. April prices from both of these mills were recorded at $460/t fob, as SBB has reported. The offers are generally believed to be too high for new conclusions, compared with cheaper prices from Taiwan and CIS countries. A mill source tells SBB that it is better to sell in the domestic market as it can achieve higher prices, rather than compete with others in the lower priced export markets. Korea, however, remains a consistent buyer of Chinese rebar, though currently at smaller tonnages. One of the workable offers this week is from a northern Chinese mill at $490 cfr Korea. In domestic markets, rebar prices have strengthened since late April and continued to increase this week. After 16-25mm HRB33 rebar prices peaked at about RMB3,400-3,420/t, they dropped by some RMB 20/t on 14 May.
Chinese rebar producers have raised export prices in tandem with domestic prices, mill and market sources tell Steel Business Briefing. Eastern China's Shagang is offering $480-485/tonne
($498-501/t) fob for vanadium-added rebar, while Chengde Iron & Steel in northern China is quoted at about $495/t fob for similar materials. April prices from both of these mills were recorded at $460/t fob, as SBB has reported. The offers are generally believed to be too high for new conclusions, compared with cheaper prices from Taiwan and CIS countries. A mill source tells SBB that it is better to sell in the domestic market as it can achieve higher prices, rather than compete with others in the lower priced export markets. Korea, however, remains a consistent buyer of Chinese rebar, though currently at smaller tonnages. One of the workable offers this week is from a northern Chinese mill at $490 cfr Korea. In domestic markets, rebar prices have strengthened since late April and continued to increase this week. After 16-25mm HRB33 rebar prices peaked at about RMB3,400-3,420/t, they dropped by some RMB 20/t on 14 May.
Australians selling ore 'wholesale' on spot market
Australian iron ore producers have begun "wholesale" selling of iron ore on a spot pricing basis, according to analysts at Macquarie Research. Compared with the benchmark price of about $90/tonne fob, recent sales appear to have been at a discount of around 40%. Chinese imports are increasingly being conducted on a spot pricing basis, Macquarie still expects a benchmark price to be concluded for 2009, especially for buyers who appear unwilling to move to spot pricing. I forecasts the benchmark price for Australian fines will be cut by 35%, and that for Brazilian ore by 30%. Price cuts for lump ore and pellets are likely to be larger, due to a major fall in demand for these products.
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