During the given week, ex-China rebar offer prices increased supported by high raw material prices, while the support from the local steel market has been not so strong. ASEAN region-based rebar sellers have also followed the trend and some deals have been reported at higher levels to Southeast Asia.
Ex-China rebar offer prices have been heard at $545-570/mt FOB for January shipment, moving up by $10/mt on average compared to November 24. During the given week, rebar prices in the Chinese domestic market have edged down slightly amid declining ferrous metal futures prices due to the curbs on the iron ore market. However, stimulus measures to boost the real estate industry have provided some support for the rebar market. “Another round of rises in [local] coke prices has been implemented, exerting a positive impact on rebar from the cost side. However, cold weather will likely negatively affect construction activities and weaken rebar demand in the coming weeks,” a trader said.
A deal for ex-Malaysia rebar has been heard at $550-555/mt CFR, theoretical weight, to Southeast Asia. This level is up by $5/mt from the tradable level last week. Moreover, new offers to Singapore have been heard at $560-570/mt CFR, theoretical weight, and some negotiations are heard at the lower end of the range. Offer prices of ex-China rebar have been at $600/mt CFR Singapore amid the relatively high prices of iron ore and the stronger local currency, with the price uncompetitive in the market.
Average rebar spot prices in China have lost RMB 23/mt ($3.2/mt) compared to November 24, standing at RMB 4,027/mt ($567/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 1, rebar futures at the Shanghai Future Exchange are standing at RMB 3,923/mt ($553/mt), decreasing by RMB 53/mt ($7.5/mt) or 1.3 percent since November 24.
$1 = RMB 7.1018