During the past week, ex-China rebar offer prices have moved sideways compared to the previous week amid the slight rises in rebar futures prices and the stable movement of local rebar prices. However, market sources are waiting for further increases in China after the holiday and also hikes by ASEAN mills considering the easing of competition.
Ex-China rebar offer prices have been heard at $540-560/mt FOB, for May shipment, moving sideways on average compared to April 19. During the given week, rebar prices in the Chinese domestic market have remained stable. Demand for rebar has improved, resulting in decreasing inventory levels, which has bolstered prices. However, heavy rains in southern China have negatively affected transaction activities, weakening the support for rebar prices there. Coke prices have seen rises, exerting a positive impact on rebar prices from the cost side. Ahead of the Labor Day holiday (May 1-5), market players anticipate that downstream users may replenish rebar stocks, which will reduce inventory levels held by mills. It is thought that rebar prices in the Chinese domestic market will likely edge up in the coming week.
Offer prices of ex- Malaysia rebar have been heard at $530/mt DAP Singapore, on theoretical weight, translating to around $525/mt CFR, remaining stable over the past week, but market sources believe that the next target level will be at least $5-10/mt higher.
Rebar prices in the Hong Kong market have increased. The offer prices for ex-Malaysia rebar have been heard at $545/mt CFR Hong Kong, on actual weight, while the reference deal prices have been heard at no less than $535/mt CFR, up by $5/mt from the previous level.
Average rebar spot prices in China have remained stable compared to April 19, standing at RMB 3,763/mt ($530/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 26, rebar futures at Shanghai Futures Exchange are standing at RMB 3,685/mt ($518/mt), increasing by RMB 10/mt ($1.4/mt) or 0.3 percent since April 19, while up 0.08 percent compared to the previous trading day, April 25.
$1 = RMB 7.1056