Posted on 05 May 2008
Some steel producers have boosted export offer for rebar to
USD 960 per tonne to USD 970 per tonne FOB for June shipment and there is
strong likelihood that quotation for July shipment would approach USD 1000 per
tone FOB or even higher.
The steady rise in domestic market, robust overseas demand
and rising production cost are believed to the major drivers. Most steel makers
told Mysteel that the output is limited by expensive coke cost. They probably
will be forced to cut production if there is not sufficient coke. The low
production will lead to less exports and much higher export price.
Some steel mills have already shot up export offers last
week citing higher cost and limited export allocation. Some traders indicate
that current updated export quotations do not mean higher transaction prices.
Actually, they lift prices on purpose so as to scare away some crazy buyers
since there is almost no cargo for exports for the moment.
(Sourced from MySteel.net)
