Korean constructors buy Chinese rebar to lower prices
According to recent news in the market, South Korean constructors have increased
rebar purchases from
China with the purpose of making pressure on local steel producers to lower their prices.
In
Korea, price of
rebar is currently at the level of Won 540'000 ($463) while Chinese
rebar price is Won 10'000-30'000 (approx. $8.5-25) lower than Korean price.
According to the statistics,
Construction Materials Purchase's Council of
Korea has purchased 38'000 tons of
rebar from
China since the end of March.
A Korean steel maker stated that, lowering prices will take some time as price of
scrap iron for making
rebar was fairly high when the material was bought.