During the past two weeks, ex-China rebar offer prices have moved up significantly amid the rise in futures prices and the better expectations regarding local demand, which have pushed up ex-ASEAN rebar prices. However, expectations for the coming week are more cautious.
Ex-China rebar offer prices have been heard at $530-540/mt FOB, for December shipment, increasing by $25/mt on average compared to September 27.
During the given period, rebar prices in the Chinese domestic market have seen further increases amid China’s stimulus policies and downstream users’ stock replenishments after the long National Day holiday. At the same time, Shagang Group has raised its offer prices for rebar by RMB 350/mt for early October, firmly bolstering market sentiments. However, after the long holiday, following previous significant rises, rebar prices have started to edge down, while this may continue for a while in the near future amid the turbulence in the financial markets. It is expected that rebar prices in the Chinese domestic market will fluctuate within a limited range in the coming week, according to market sources.
In Singapore, the tradable level for Malaysian rebar has been heard at $515/mt CFR, up $15-20/mt over the past two weeks, though offers have been at up to $520/mt CFR and from some Chinese sources at $530-540/mt CFR Singapore, on theoretical weight basis.
Average rebar spot prices in China have gained RMB 310/mt ($44/mt) compared to September 27, standing at RMB 3,787/mt ($536/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 11, rebar futures at Shanghai Futures Exchange are standing at RMB 3,468/mt ($490.5/mt), increasing by RMB 127/mt ($18/mt) or 3.8 percent since September 27, while up 0.23 percent compared to the previous trading day, October 10.
$1 = RMB 7.0731
