Import rebar prices in Asia have remained low over the past few weeks, while trading has been muted. The negative situation in the Chinese market after the holiday has affected sentiments, but most market sources believe that a further decline in rebar prices in the region is doubtful due to the high levels of raw material prices.
Offer prices of ex-Malaysia rebar have been heard at $535/mt DAP Singapore at the lowest, on theoretical weight, translating to $525-530/mt CFR, in line with the previous deals and the lowest levels reported in late September in Singapore.
Prices for ex-China material to Singapore have been at $540/mt CIF Singapore, but the level could be lower from small mills and traders, who are operating within the framework of non-VAT trading. Ex-China rebar offer prices from small mills and traders have been heard at $490-520/mt FOB, for November shipment, down by $10/mt on average from the pre-holiday level, but, as of Monday, October 16, most suppliers have started to withdraw offers ahead of increasing them.
“During the past week, inventory of rebar in China has risen. Some steelmakers announced that they would reduce outputs amid low profitability. If this is strictly implemented, it will bolster rebar prices in the future. Currently, demand has remained slack,” a Chinese trader said.
On October 16, rebar futures contract (rb2401) offers closed at RMB 3,657/mt ($509/mt) at Shanghai Futures Exchange, increasing by RMB 19/mt ($2.6/mt) compared to October 9, while increasing by 1.05 percent compared to the previous trading day.