Importers in the Asian region have returned to ex-Turkey rebar purchases this week with two new sales reported. And though deals were done at the same levels as most transactions in early April, market sources believe that not high availability of rebar in the market and some increase in scrap prices will support rebar prices in Asia in the near future.
A Turkish mill sold 50,000 mt of rebar to Singapore at $670/mt CFR on theoretical weight basis for July shipment, according to market sources. This price is the same as deals done early this month, but down from $680/mt CFR reported as the workable level last week.
Nevertheless, traders have reported official offers of ex-Turkey rebar at $690-695/mt CFR again late this week.
Another 50,000 mt of Turkish rebar were sold to Hong Kong at $680-685/mt CFR actual weight.
Ex-China rebar offer prices have been heard at $710-720/mt FOB, for June shipment, remaining stable on average compared to that recorded on April 16, while the prices would be as high as $805/mt FOB if steelmakers bear potential risks of tax rebate cut. “The production restrictions will decrease the supply of rebar to the market, while demand will be good, which will bolster local rebar prices and exert a negative impact on rebar export,” an international trader said.
Average rebar spot prices in China have gained RMB 34/mt ($5.2/mt) week on week to RMB 5,137/mt ($790/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 23, rebar futures at the Shanghai Future Exchange are standing at RMB 5,299/mt ($815/mt), increasing by RMB 183/mt ($28.2/mt) or 3.6 percent since April 16.
$1 = RMB 6.4934