News Room - Steel Industry

Posted on 01 Dec 2008

Asian export of rebar, billet encounters bottleneck

According to the latest statistics, the price of rebar and billet are both down in Asia. The former dropped to US$390/ton while the latter dropped to US$335/ton, both on the basis of FOB. However, buyers are still showing little interests.

 

In fact, not only in Asia, the price of rebar and billet is descending worldwide, down by US$100/ton compared with the previous one. Analysts said the current slack demand and bleak market resulted in the decrease in price.

 

Now, the price of rebar and billet stands at RMB13,000/ton (US$1,903/ton) and RMB15,000/ton (US$2,196/ton) respectively, rather reasonable calculating on the scrap cost of RMB7,000/ton (US$1,025/ton). Disappointingly, it enjoys no popularity home and abroad.

 

Experts said that the way out for steel producers is to, in the final analysis, cut the cost or output.