After three seals for 40,000-50,000 mt each for import rebar done to Asia over the past week to ten days, suppliers have started to increase offers, banking on rising raw material costs. The local Chinese rebar market has also posted some slight improvements, supporting sentiment.
Ex-Malaysia rebar has been sold at $665/mt CFR Hong Kong, actual weight, after a Turkish mill closed a contract at $670/mt CFR Hong Kong, as was reported by SteelOrbis early in the week. Market sources said that rebar prices have declined enough to attract some customers. But from Thursday, offers for rebar have started to increase. Ex-ASEAN offers from some mills have increased to $690-700/mt CFR Hong Kong.
Demand from Singapore has been lower than from Hong Kong, with only one 40,000 mt rebar sale rumored from Turkey to Singapore at $650/mt CFR on theoretical weight or around $620/mt FOB base. By the end of the week, Turkish mills have increased offers to $650-670/mt FOB base, so $675-680/mt CFR Singapore at the lowest, as scrap prices have increased much since Turkish mills have managed to sell some sizable rebar lots abroad, lowering inventory pressure. At the same time, buyers in Singapore have been unwilling to accept any increase and bids have remained at $645-650/mt CFR Singapore, theoretical weight.
Ex-China rebar offer prices from mills have been heard at $670-700/mt FOB, August shipment, moving down by $10/mt on average compared to June 24.
“Rebar prices in the Chinese domestic market have edged up recently amid the production reduction on mainstream steelmakers’ side, while the demand for rebar has improved to a certain degree, though inventory is still at relatively high levels. Market players think demand from downstream construction sites will be the key factor affecting future rebar prices,” an international trader said.
Average rebar spot prices in China have gained RMB 86/mt ($13/mt) compared to June 24, standing at RMB 4,373/mt ($654/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 1, rebar futures at the Shanghai Future Exchange are standing at RMB 4,265/mt ($637.5/mt), rising by RMB 76/mt ($11.4/mt) or 1.8 percent since June 24.
$1 = RMB 6.6863