Prices for rebar have fallen in Asia this week, following fresh deals from Turkey. And though last week some Chinese traders were able to compete with Turkish sellers, at the moment the ex-China price is obviously higher. Improving demand in the local market in China has kept exporters from pushing volumes abroad aggressively.
A deal for ex-Turkey rebar was heard at $445/mt CFR Singapore on theoretical weight basis last week. At the same time, a fresh booking of an additional 50,000 mt of Turkish rebar has been done at $429/mt CFR Singapore on theoretical weight basis this week. According to sources, Chinese sellers have been in negotiations at about $440/mt CFR Singapore on theoretical weight basis ($437/mt FOB on actual weight basis). There has been no confirmation about volumes sold this week, but last week some tonnages were traded, according to a Chinese trader.
Last week, ex-Turkey rebar was also sold at $460/mt CFR Hong Kong on actual weight basis, but this price level is above the real market level - $445/mt CFR Hong Kong - at the moment.
SteelOrbis has been informed that Chinese mills’ export offer prices for rebar have moved sideways following a stable trend over the previous week and currently stand at $435-455/mt FOB amid improved sentiments in the local market. “Ongoing resumption of production and construction by downstream users has exerted a positive impact on the local rebar market, while measures taken by countries abroad to contain the rapid spread of the coronavirus have negatively affected buying sentiments worldwide, resulting in lower bids from Southeast Asia,” a trader said.
Moreover, “The recent depreciation of the Chinese currency has made Chinese traders unwilling to receive orders as it will be risky,” an international trader has told SteelOrbis. On March 20, the exchange rate reached $1 = RMB 7.1052, 1.5 percent higher than on March 13.
Though the resumption rate of the construction industry in China has improved, local governments have urged steelmakers to resume production, which has exerted a negative impact on the rebar market due to increased inventories.
Anhui Province-based Ma’anshan Iron and Steel has raised its offer prices for rebar by RMB 40/mt ($5.6/mt) on March 20, signaling its optimistic view of the future prospects for the rebar market.
Average rebar spot prices in China have gained RMB 74/mt ($10.4/mt) week on week to RMB 3,607/mt ($508/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 20, rebar futures at the Shanghai Future Exchange are standing at RMB 3,483/mt ($490/mt), decreasing by RMB 86/mt ($12.1/mt) since March 13.
$1 = RMB 7.1052