World Rebar Export Price Keeps Dropping

Slow mood in concrete reinforcing bar export market could be longer than expected. The buyers in United Arab Emirates (UAE), which led the world market, are away from the market while around 3-month rebar inventory is cumulated in Dubai Emirate, which consumes around 70% of rebar in UAE. With the estimated 1.5 million tonnes of inventory in Dubai, the importers pressure on the suppliers for lower price. The import price decreased to around half of the peak of US$ 1,400-1,500 per tonne impacting on the world market. Turkey makers represent large part of rebar supply for Middle East while South Korean and other Asian makers exported rebar aggressively. Hyundai Steel source said importers in Dubai try to halve the import price even for existing orders and the local price decreased to around US$ 800 per tonne last week. Turkey makers’ export price is around FOB US$ 700 for Middle East and C&F US$ 770 for Singapore. The lower rebar price in Middle East impacts on the world market. Turkey makers shift to North America reducing offer to around CIF US$ 700 per tonne. However, US importers seek lower price when the local ferrous scrap price decreased to less than US$ 300. Taiwanese export price decreased to CIF US$ 680 for North America. Japanese makers also reduced the rebar export price sharply. The makers have no new export contract after South Korean importers sought around FOB US$ 700 per tonne for Japanese makers while Japanese makers got FOB US$ 760 order from South Korea for October shipment. Some Japanese industry interests expect the rebar export price could decease to less than US$ 700 for South Korea for November shipment. Middle East shock is likely to suffer the world export market reducing the market price for a while.