During the last two weeks, import rebar prices in the Asian market have posted further drop and as a result, at least three deals for sizable lots of ex-Middle east rebar have been concluded to Singapore and Hong Kong. At the same time, ex-China rebar offer prices have remained stable due to the rainy weather in China, exerting a negative impact on demand and preventing rebar prices in the Chinese domestic market from a visible rise.
A contract for 25,000 mt of ex-Oman rebar has been signed to Singapore at $560/mt CFR theoretical weight, down from the tradable level of $580-590/mt CFR Singapore two weeks ago. Meanwhile, offer prices of ex-Malaysia rebar have been heard at $565-575/mt CFR Singapore on theoretical weight.
In addition to this, 50,000 mt of ex-Qatar rebar have changed hands at $531/mt FOB or $560/mt CFR in Hong Kong on actual weight, also down by $20/mt from early May. The producer from the UAE has also sold a cargo to Hong Kong. According to market sources, a 30,000 mt combined cargo of wire rods, rebar in coils and rebar has been sold at $525/mt FOB actual weight, which translates to around $555/mt CFR Hong Kong.
Ex-China rebar offer prices have been heard at $530-550/mt FOB for July shipment, remaining stable on average compared to May 12. “During the given week, rebar futures prices have seen ups and downs, affecting market players’ sentiments, while the demand for rebar has been sluggish due to the rainy weather in China, which obstructed the construction activities at sites, while ongoing production reduction bolstered rebar prices to some extent,” an international trader said.
Average rebar spot prices in China have gained RMB 24/mt ($3.4/mt) compared to May 12, standing at RMB 3,767/mt ($535/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 19, rebar futures at the Shanghai Future Exchange are standing at RMB 3,645/mt ($518/mt), edging up by RMB 66/mt ($9.4/mt) or 1.8 percent since May 12.
$1 = RMB 7.0356