During the past week, ex-China rebar offer prices have moved down compared to the previous period amid the decreasing trends of rebar futures prices and local market prices. And a few sales have been reported for Chinese material at the lower levels to Southeast Asia.
Ex-China rebar offer prices from first-tier mills have been heard at $455-475/mt FOB, for May shipment, moving down by $10/mt on average compared to March 14.
Average rebar prices in the Chinese domestic market have moved on a downtrend compared to the previous week. On March 21, Jiangsu Province-based Shagang Group cut its offer prices for rebar by RMB 50/mt ($7/mt) to RMB 3,400/mt (474/mt) for delivery during March 21-31, weakening the support for market sentiments. However, inventory levels of rebar have decreased slightly in the past week, reflecting improved demand from downstream users. The decreasing iron ore prices exerted a negative impact on rebar prices from the cost side, which also resulted in cautious sentiments among market players. It is thought that rebar prices in the Chinese domestic market will likely fluctuate within a limited range in the near future.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $480/mt DAP, theoretical weight, slightly higher than $475-480/mt DAP a week ago. This price translates to $470-475/mt CFR. Some deals for small volumes have been done at equivalent to $470/mt CFR. Also, buyers’ counteroffer of ex-China rebar stood at $475/mt CFR first, while some deals have been even closed at $465-470/mt CFR, theoretical weight, for Chinese origin. This means buyers have managed to get discounts from the previous offers at $485-490/mt CFR seen a week ago.
In the Hong Kong market, the tradable level for import rebar stands at $475/mt CFR, actual weight, moving down by $10/mt week on week.
Average rebar spot prices in China lost RMB 60/mt ($8.4/mt) last week, standing at RMB 3,307/mt ($461/mt) ex-warehouse on March 21, according to SteelOrbis’ information.