Why Fully Thread Bar Price Do Not Fall With Steel Bar/Rebar?
Many customers have asked: General steel bar/Rebar prices have recently decreased, yet why do your fully thread bars not drop in price, and sometimes even cost more?
1. Minimal impact from raw material prices
As special prestressing steel, the price of fully threaded bars remains unaffected unless raw materials like iron ore and coke see dramatic price swings.
2. Supply and demand dictate medium-to-long term pricing
Prices tend to rise when infrastructure projects (tunnels, bridges, slope stabilization) start construction on a large scale amid tight market inventory.
Prices decline when manufacturers operate at full capacity with ample stock and weak overall market demand.
3. Exchange rate directly adjusts export USD quotations
When the RMB depreciates, our USD quotations become cheaper compared with the period before depreciation. In contrast, when the RMB appreciates, our USD quotations will be higher than those before appreciation.
4.Supplementary Note: Impact of Ocean Freight on CIF & C&F Quotations
For CIF or C&F (CFR) pricing terms, fluctuations in ocean freight exert a substantial impact on total offers. These two trade terms cover full sea transportation costs. Once shipping rates surge in the logistics market, the overall unit price will rise accordingly. Only when ocean freight drops sharply can the total quotation be reduced. By contrast, FOB prices exclude sea freight and remain unaffected by freight volatility.
Our prices have risen significantly compared with January. Due to global market conditions, product costs had already increased sharply since the start of the year. Meanwhile, the RMB has appreciated greatly — the exchange rate dropped from 7.1 to the current 6.75. For these combined reasons, our overall product prices are much higher than those in January.
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