Rebar prices are expected to gradually move up in the domestic distribution market in South Korea, according to the Korea Metal Journal (KMJ).
Distributors' rebar prices were standing at KRW 770,000-780,000/mt, ($678-687/mt) as of August 13 in the South Korean market. While prices have not showed any signs of a price rebound, the increased electricity prices and the strength of import rebar offers have boosted the possibility of increases in domestic rebar prices. US and Japanese rebar offer prices are also on an uptrend.
While domestic rebar prices had been expected to soften up to September, the hike in raw material prices against expectations has changed the market sentiment. As stated, the increase in electricity prices has been another factor in the change in market sentiment.
The tight supply of small size rebars during the July-August seasonal slowdown also provides support for expectations of a price rebound.
The sentiment in the market is that KRW 770,000/mt ($678/mt) is the bottom level and that rebar prices will rebound in September.