Ex-China rebar offer prices have seen a downward trend over the past week amid cautious local sentiments and the lack of a bright outlook, even considering the expected slowdown of steel production in Hebei. Ex-Malaysia rebar prices to Southeast Asia have dropped, as a downward trend is inevitable in the current conditions.
Ex-China rebar offer prices have been heard at $500-520/mt FOB, for December shipment, decreasing by $10/mt on average compared to October 18. During the given week, cautious sentiments have prevailed among market players, exerting a negative impact on rebar prices in the Chinese domestic market. In northern China, the cold weather will slacken the demand for rebar, while two approaching typhoons will hit the southeast coast of China in the coming two days, which will also negatively affect the rebar market. However, a level II emergency response initiated by several cities in Hebei Province may reduce rebar outputs, which would bolster prices to a certain degree. It is expected that rebar prices in the Chinese domestic market may edge down further in the coming week, according to market sources.
In the Singapore market, import offer prices of ex-Malaysia rebar have been heard at $515/mt CFR, theoretical weight, down $15-20/mt compared to the previous week. At the same time, ex-China rebar offers are at $530/mt CFR, with discounts possible. Meanwhile, the prices levels of ex-Vietnam and ex-Middle East rebar are still high at $545-550/mt CFR, theoretical weight.
In the Hong Kong market, offer prices from Chinese traders have been heard at $535/mt CFR, actual weight, with a small number of orders booked.
Average rebar spot prices in China have lost RMB 83/mt ($12/mt) compared to October 18, standing at RMB 3,580/mt ($503.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 25, rebar futures at Shanghai Futures Exchange are standing at RMB 3,376/mt ($475/mt), increasing by RMB 40/mt ($5.6/mt) or 1.2 percent since October 18, while up 1.93 percent compared to the previous trading day, October 24.
$1 = RMB 7.109
