Hong Kong: Rebar import prices drop further, India's export prices at 2-month low

Rebar import prices into Hong Kong witnessed a sharp fall after Vietnam's leading steel producer, Hoa Phat, aggressively lowered its export offers, as per SteelMint reports.

Currently, export offers of rebar from Hoa Phat stand at around $695-700/t CFR Hong Kong and $690-692/t CFR Singapore on actual weight (AW) basis.

Following this, rebar export prices from India, too have fallen to around two-month-lows, as per data maintained with SteelMint.

A major Indian steel mill concluded an export deal of 25,000 tonnes (t) of rebar (BF-route, B500B) to Hong Kong earlier this week, sources informed SteelMint. The steel mill achieved a price level of $705-710/t CFR Hong Kong on actual weight (AW) basis.

Lower bids and drop in coal prices have resulted in a decline in rebar import prices in key importing markets like Hong Kong and Singapore.

Indian rebar exports fall significantly in Oct'21

India registered a significant 67% m-o-m fall in its rebar exports in Oct'21. The volumes stood at 44,372 t in Oct'21 as against 124,189 t in Sep'21, as per customs data collated by SteelMint. Cost-effective offers from the Middle Eastern countries and limited export bookings have kept Indian rebar exports on the lower side.

Outlook

Considering limited export deals in billets and longs, it is expected that India's domestic prices may not see a sharp hike in the short term.

Most of India's leading steel mills have announced a downward correction in domestic list prices for Dec'21. Rebar prices, post-the revision, stand at around INR 57,000-57,500/t ($752-759/t), down INR 3,000/t exy-Mumbai, exclusive of 18% GST.