Korea's steel rebar import exceeded 80,000 tons in March, of which those from China accounted for above 60,000 tons. The March import of rebar was 85,154 metric tons, 40.5 percent higher than the previous month, or 13 percent from a year ago, Korea Iron and Steel Association said. Import from Japan and Taiwan dwindled a year ago, but Chinese material imports increased by large tonnage.
In March, Chinese mainland rebar imports recorded 60,901 metric tons, higher as much as 40 percent from February, or 42.1 percent a year ago. On the collective basis through March, the import quantities increased 65.9 percent to 148,122 metric tons. The main reason of the import surge appeared due to the lowered export offer prices.
On the other hand, import of rebar from Japan and Taiwan decreased, compared with those a year ago. Rebar import from Taiwan soared 24 percent to 5,207 metric tons in March from February, but downed 2.6 percent a year ago. Likewise, import from Japan jumped 46.2 percent to 18,863 metric tons month to month, but plunged 30.3 percent over a year earlier.
The collective rebar import through March increased due largely to import surge from China mainland, 13.2 percent higher a year ago totaling 215,177 metric tons. Meanwhile, rebar exports in March improved 55.8 percent to 2,259 metric tons, but fell sharply 66.4 percent a year ago. In March, the average import price of rebar recorded $504 per ton, down $6 per ton from February, while Japanese materials averaged $507 per ton, down $49 per ton from the prior month.
However, average import price from China improved slightly, around $4 per ton to $501 per ton, due largely to the export offer prices which showed the upward tendency since the start of January.
For instance, China’s Shagang Steel placed higher quotations of $510 per ton, SD400, 10mm, cfr, as a series of export offer prices increase over three months. The mill increased to $533 per ton in February, to $543 per ton in March, and to $559 per ton in April respectively. The average import price of rebar is forecast to rise continuously as long as Chinese steel prices keep strong.
Notwithstanding, the Korean steel traders complain over the continuing rise of Chinese export offer prices, facing with the worsening profitability after March in particular. “The Chinese rebar is trading at 620,000 won per ton lately, but as the average import price goes up, domestic dealers will suffer from dampening sale,” importers worried.
Source: Steel&Metal News |
