Global Rebar Market’s Roller Coaster Ride- Find Out What's Really Happening In Different Countries

The global rebar market experienced subdued demand and high volatility, leading to negative sentiment in the international market. Let’s take a closer look at the market movements in different regions and explore the market outlook.

International Performance

• India

The domestic rebar market in India witnessed sluggish demand and price corrections, with prices dropping by approximately Rs. 300-800/ton ($3-10/ton). However, the market gained support at the beginning of the current week due to an increase in Scrap prices amid a Scrap materials scarcity. This prompted sellers to raise Steel prices across various segments, as assessed by OfBusiness. Rumors suggested that Scrap demand surged after Indian customs halted Scrap materials’ (from the UAE) import clearances.

• Turkey

In Turkey, the Rebar market initially gained support as buyers resumed bookings after a prolonged period of silence. Rebar quotations at the beginning of May 2023 remained stable at around $607-627/ton but later grew to about $612-632/ton in mid-May. In May beginning, Turkish Rebar prices fell as international buyers showed little interest in Turkish-made material due to the increased cost of finished products. The local producers were facing financial problems, including limited access to foreign currency and credit. This made sellers struggle to compete in export markets due to the high costs of domestic finished materials.

However, in mid-May, domestic demand increased significantly after the first round of presidential elections, leading to a rebound in the rebar market.

• China

The Chinese Rebar market experienced a price decline in mid-May, with trade prices dropping by 1.5% to $501-503/ton compared to April 2023. Weak domestic demand for TMT and unmet expectations for market recovery after the holidays contributed to the price decrease. Despite production cuts by local steelmakers, the market still faces supply pressure challenges, and the price fall has not been balanced. Some mills are planning to restart previously shut-down furnaces. The overall outlook for the first half of 2023 in China remains pessimistic, with product prices expected to be around $475-480/ton in May 2023-June 2023.

• The United States

In the US, Rebar offers remained stable for the third consecutive week at around $915-935/ton. Low trading activity and slow construction, coupled with increased construction costs and interest rates, contributed to limited inquiries. The decrease in scrap prices also impacted rebar rates. Construction contractors are taking on fewer projects due to rising building material costs. The market faces selling pressure as supply exceeds demand for rolling mills.

Market Outlook

The global Steel market is expected to reach a balance between supply and demand closer to autumn. Raw materials and steel price fall is anticipated to stabilize amid increased demand. However, a negative scenario predicts a further deepening of negative price trends.

OFB’s Insight 

Overall, the global Rebar market currently faces challenges, with each region experiencing specific factors affecting demand and pricing. Market performance depends on various factors, including supply-demand balance, raw material costs, and economic conditions in different markets.

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