SteelOrbis has been informed that Chinese mills’ export offer prices for rebar have moved sideways during the past week at $435-455/mt FOB on actual basis, following the rise of $10/mt in the previous week, against the backdrop of improved sentiments in the local market. “The further resumption of production and construction by downstream users has positively affected the local rebar market with current inventories being consumed, while the rapid spread of the coronavirus worldwide has offset the optimistic sentiments in the local market,” a trader said.
“However, rebar futures prices have moved on a rising trend continuously, which will likely support ex-China rebar prices in the near future,” an international trader told SteelOrbis.
At present, offers for ex-China rebar have been heard at $455/mt CFR Hong Kong on actual weight basis for May delivery, while some rare bids have been at $440-445/mt CFR Hong Kong. Offers for ex-Turkey rebar to Singapore have been at about $450/mt CFR on theoretical weight basis, while ex-China offers have been at $455/mt CFR Singapore and above. But demand has been extremely weak.
The investments planned for so-called “new infrastructure” construction in China this year have boosted market players’ sentiments, which will bolster rebar prices in the local market and so traders and steelmakers will be unwilling to cut their export offer prices for rebar.
Jiangsu Province-based Shagang Group has kept its offer prices for rebar, high-speed wire rod and bar-in-coil stable for March 11-20, signaling its optimistic view of the future prospects for the wire rod market.
Average rebar spot prices in China have gained RMB 10/mt ($1.4/mt) week on week to RMB 3,533/mt ($505/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 13, rebar futures at the Shanghai Future Exchange are standing at RMB 3,569/mt ($510/mt), increasing by RMB 128/mt ($18.3/mt) since March 6.
$1 = RMB 7.0033