During the given week, ex-China rebar offer prices have edged down slightly compared to the previous week amid decreasing rebar futures prices and, moreover, ex-ASEAN suppliers have been more flexible with a few deals reported to Southeast Asia, following at least $10/mt discounts.
Ex-China rebar offer prices have been heard at $550-560/mt FOB, for April shipment, edging down by $5/mt on average compared to February 23. Following the long holiday, new construction activities in China have been worse than expected, negatively affecting market sentiments, resulting in cautious sentiments as regards the future prospects for the rebar market. “Market players have been unwilling to take part in speculations as margins are low, reducing transaction activities,” a trader said.
In Singapore, a deal for 40,000 mt of ex-Vietnam rebar has been done at $560/mt CFR on theoretical weight, which is down by $10/mt from the previous ex-ASEAN offers, but in line with buyers’ latest bids. The transaction was done late last week, but by the end of this week bids for rebar in Singapore have been heard at $550-555/mt CFR, while offer prices for ex-Malaysia and ex-Vietnam rebar are still at $560/mt CFR. Also, a deal for 20,000-25,000 mt for ASEAN rebar is rumored to have been done to Hong Kong at $560-565/mt CFR on actual weight, also down by $10/mt from the previous offers seen last week. The declining rebar futures prices in China are the main reason for the price softening.
Average rebar spot prices in China have lost RMB 53/mt ($7.5/mt) compared to February 23, standing at RMB 3,907/mt ($550/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 1, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,763/mt ($530/mt), decreasing by RMB 27/mt ($3.8/mt) or 0.71 percent since February 23, while decreasing by 0.84 percent compared to the previous trading day, February 29.
$1 = RMB 7.1059