Demand for imported rebar has improved in Asia lately as customers have decided to make bookings before further price increases, which are expected due to the recent scrap price increase in Turkey.
Two deals for 80,000 mt in total for ex-UAE and ex-Qatar rebar have been done to Singapore at $610/mt FOB, translating to $650/mt CFR Singapore, theoretical weight. This price has been heard in offers since last week, but new offers are expected to be at $660-670/mt CFR Singapore or so, according to sources.
Offer prices of rebar from ASEAN mills have increased to $650-670/mt FOB amid the modest recovery in demand, while downstream users have mostly held a wait-and-see stance as regards concluding purchases.
Ex-China rebar offer prices have been heard at $620-650/mt FOB, April shipment, increasing by $10/mt on average compared to February 17.
“Local rebar and wire rod prices in the Chinese domestic market have seen an overall rising trend amid the increasing trend of rebar futures prices and iron ore prices, while downstream users have been more willing to conclude purchases amid prevailing bullish sentiments, and inventory of rebar and wire rod are expected to decrease due to the upcoming two government sessions which will be held in Beijing, which will bolster prices,” an international trader said.
Average rebar spot prices in China have gained RMB 50/mt ($7.3/mt) compared to February 17, standing at RMB 4,320/mt ($627/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 24, rebar futures at the Shanghai Future Exchange are standing at RMB 4,224/mt ($613/mt), moving up by RMB 57/mt ($8.3/mt) or 1.4 percent since February 17.
$1 = RMB 6.8942