Around the end of April, domestically made H-beam and reinforcing steel bar prices on the market showed the levels similar to the middle of that month, with rebar apparently settling at around 700,000 won per ton but resulting in the downside again.
H-beam prices traded ate between 820,000~830,000 won light gauge scope, while rebar prices confirmed to trade around 695,000 won per ton for SD400 and 10mm which little changed from the third week.
The selling price for H-beam is known to form about 840,000 won per ton at the exclusive agent level, but the real prices trade at around 820,000~830,000 won per ton, the industry people said. The real trading price is about 10,000 won per ton lower than the proposed level of 840,000 won per ton, they added.
Thus, Korean H-beam makers pay attention to the tendency Korean product and imported materials move to increase prices beginning next month, scheduled to raise from May 1, but the potential reflection on the market will be totally dependent upon its response after May.
The rebar prices maintain as a whole similar to those of third week of April, approaching around 700,000 won per ton, which heightened 5,000~10,000 won per ton early fourth week on the market, but turning downward to 690,000 won per ton level. The main cause of retreat seemed due to the weather forecast of rains at the end of April, the industry people said.
It will be difficult for the prices at the market to further hike as approaching the end of the month, tilted to being in fear of further downside on the contrary. Under these circumstances, it is expected that the SD300 grade will be exiting the market because of diversified steel grades as well as advanced rebar production technology. According to the industry, the demand for SD300 grade has been steeply contracting since the commercialization for SD500~600 steel class took place.
Korean production for SD500 class makes inroads as the market needs for super high stencil rebar products lately, expecting to outpace 50 percent of the entire rebar production. On the other hand, the annual needs for SD300 class could approach 40 percent share range before the demand for SD500~600 classes began commercialization, but its market share is now just about 1~2 percent.
Accordingly, the SD300 grade rebar will be out of the market naturally if the existing inventories will be wholly consumed in the market, the industry people forecast.
Source: Steel&Metal News |
