During the given week, fresh deals for imported rebar in Singapore and Hong Kong have been disclosed from Turkey and Qatar, while offers have kept going up amid rising scrap costs. Ex-China rebar offer prices have also edged up slightly amid increasing rebar futures prices and local spot prices in the country.
Deals for ex-Turkey and ex-Qatar rebar have been heard at $505/mt CFR Hong Kong, actual weight, for February shipment, both for 50,000 mt. Before these contracts, Turkey sold a cargo at $495-500/mt CFR Hong Kong, indicating an increase of $7.5/mt on average week on week, amid rising scrap prices and tight supply in the market.
In Singapore, though buyers were resisting first, they have also accepted the higher rebar prices. The latest deal for Turkish rebar in Singapore has been heard at $495/mt CFR on theoretical weight basis, up by $5/mt from the tradable value reported last week.
Full order books for rebar exports, the strong local market in Turkey and the uptrend in the scrap segment have led to the surge in offer prices for Turkish rebar in Asia. Most Turkish suppliers have been not offering or offering at not below $530/mt CFR Hong Kong and $510-515/mt Singapore.
Ex-China rebar offer prices have been heard at $530-560/mt, FOB, for February shipment, moving up by $5/mt on average compared to November 13, while rare deals were heard due to the high prices.
In the local market in China, demand for rebar is still good, while rainy and snowy weather in northern China will exert a negative impact on demand there in the future, which will cause rebar supplies to circulate into southern China and may negatively affect the local rebar market.
Average rebar spot prices in China have gained RMB 64/mt ($9.7/mt) week on week to RMB 4,207/mt ($639.4/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 20, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,977/mt ($604/mt), increasing by RMB 137/mt ($21/mt) or 3.6 percent since November 13.
$1 = RMB 6.5786