Hong Kong Extends Compliance Deadline for Imported Rebar Specs by Two Years

Hong Kong authorities have extended the deadline requiring all steel rebar imports to comply with updated construction standards by another two years, a move that has given market participants reason to heave a sigh of relief.

Importers of rebar have now been given a grace period of until December 31, 2018 -- the second time the deadline has been extended by two years -- to comply with the British Standard 4449: 2005, industry sources and an official at the Hong Kong Civil Engineering and Development Department told S&P Global Platts Friday.

The standard covers rebar of grades 250, 500B and 500C, and sets out specification requirements across various physical, mechanical and chemical properties.

The parameters surrounding rib geometry, in particular height and spacing, were those that existing imports were challenged in meeting, the sources said.

"We were united in trying to win over the authorities," a Hong Kong rebar stockist told Platts. "Otherwise, at least 20% of the rebar wouldn't meet specifications."

Rebar importers had been lobbying the building authorities under the banner of the Hong Kong Steel Stockist Association.

Hong Kong imports about 1.7 million mt/year of rebar, mainly from China.

Earlier, stockists and Chinese steelmakers had been concerned that stricter enforcement of the standards from this year would rebuff a portion of the imports, and higher costs may result if Chinese suppliers turned to other markets instead.

Hong Kong's main suppliers are steelmakers in eastern China, like Jiangsu Shagang Group, Jiangsu Yonggang Group, Jiangyin Xicheng Steel, Shandong Laigang Yongfeng Steel and Jiangyin Changda Iron & Steel.

In Singapore, another former colony that adopts the British Standard for rebar, market participants have said that similar standards apply, but are not strictly enforced because they are in reality difficult to comply with.

Singapore is also not in an earthquake zone, they said, making it less critical to ensure that each specification in the standard is adhered to.