South Korea: Rebar retail prices increase by KRW 5,000/t ($4/t) w-o-w

Retail prices of rebar in South Korea have recorded a slight increase w-o-w to KRW 1,040,000/tonne ($870/t) from KRW 1,035,000/t ($866/t) in the previous week following the price hike in the manufacturing industry. Prices picked up in the second half of the week.

However, as prices bottomed out at the beginning of the week, sellers managed to sell out the desired amount of the material before the price hike.

On the other hand, imported rebar prices also moved up to KRW 980,000/t ($818/t) from KRW 960,000/t ($801/t) a week ago.

The hike in retail prices of rebar came on the back of an increase in prices by primary manufacturers. Further, market participants are expecting to see a further hike in prices by up to KRW 30,000/t ($25/t) which will be the first time since Aug'21.

The increase in prices by KRW 30,000/t ($25/t) is significant because it will incur profits even after excluding shipping costs when stockpiling. Moreover, many participants are confident that rebar prices, in both the domestic and imported markets, will increase until the next week.

Way ahead

As the coming week is the Korean New Year (starting from 1 Feb'22), demand usually weakens and prices stagnate ahead of the holidays. But, as expectations for price hikes increase, it seems difficult to compare with the normal times.

The retail industry is hopeful to see a noticeable hike in prices going forward. However, it remains to be seen how strong the uptrend will be.

Note: This article has been published under an article exchange agreement between SteelDaily and SteelMint.