During the given week, ex-China rebar offer prices have moved on a downtrend amid the decreasing rebar futures prices and the prevailing cautious sentiments among market participants. The bearish Chinese market has continued to put pressure on import rebar prices in Southeast Asia, which have fall below the $600/mt CFR mark.
Ex-China rebar offer prices have been heard at $540-550/mt FOB, for June shipment, declining by $20/mt on average compared to April 21. “Rebar futures prices have moved down sharply, exerting a negative impact on spot prices. More and more steelmakers have started to reduce outputs, and at the same time market players have been unwilling to replenish stocks since the Labor Day holiday [April 29-May 3] is approaching,” an international trader said.
Offer prices of ex-Malaysia rebar have been heard at $590-600/mt CFR, Singapore, theoretical weight, down by $10/mt over the past week. Ex-China offers are at $600/mt CFR Singapore.
However, some traders’ offers to Hong Kong have been heard at $580/mt CFR, actual weight, though buyers in the ASEAN market have mostly held a wait-and-see stance. These lower price offers could be for forward shipment, market sources believe.
Average rebar spot prices in China have lost RMB 150/mt ($21.7/mt) compared to April 21, standing at RMB 3,833/mt ($554/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 28, rebar futures at the Shanghai Future Exchange are standing at RMB 3,660/mt ($529/mt), moving down by RMB 254/mt ($36.7/mt) or 6.5 percent since April 21.
$1 = RMB 6.924