During the given week, sentiments in the Asian rebar market have improved amid news about expected support for demand in China in the third quarter and production cuts in more regions in the country.
Ex-China rebar offer prices have been heard at $440-460/mt FOB, remaining stable on average compared to July 4, but sentiments have improved. During the given week, rebar futures prices have continued their uptrend, with the Center for Urban and Small Town Development of National Development and Reform Commission (NDRC) stating it would increase investment in the field of new urbanization.
Tangshan, a major steelmaking hub in northern China, has been required to cut steel production, while there have been rumors about production restrictions in Shanxi Province, which will reduce supply and bolster rebar prices. Though demand for rebar from downstream users has been slack in the traditional off-season due to the high temperatures and heavy rains in some regions of China, it is expected that rebar prices in the Chinese domestic market will edge up in the coming week.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $465/mt DAP, theoretical weight, rising by $5/mt on average compared to July 4. This price translates to $455-460/mt CFR. Offer prices of ex-China rebar stood at $460/mt CFR, theoretical weight, but market sources reported about the latest deal signed a week ago at $450/mt CFR. At the moment, this level is assessed as being too low for the market.
In the Hong Kong market, buyers’ counter-offer target prices stand at $455/mt CFR, actual weight, up $5/mt on average compared to July 4, while offer prices of ex-Malaysia rebar have been heard at $465/mt CFR, actual weight, also increasing by $5/mt on average week on week.
Average rebar spot prices in China have gained RMB 40/mt ($5.6/mt) compared to July 4, standing at RMB 3,217/mt ($450/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 11, rebar futures at Shanghai Futures Exchange are standing at RMB 3,133/mt ($438/mt), increasing by RMB 61/mt ($8.5/mt) or 2.0 percent since July 4, while up 1.1 percent compared to the previous trading day, July 10.
$1 = RMB 7.1475
