Demand for imported rebar has been weak in Asia this week as buyers have not been ready to assess higher prices seen from some regional sellers. Observing the negative trend which has started to be seen in scrap prices, market sources believe that discounts for rebar may reappear in the short time. During the given week, ex-China rebar offer prices have indicated a slight downtrend, though the local market has started to post some rebound lately.
Offer prices of ex-Malaysia rebar have been heard at $595-600/mt CFR, Singapore, on theoretical weight, which is $10-15/mt higher than the latest tradable level in Singapore seen last week. Some traders’ offers for ex-Middle East have been heard at $590-595/mt CFR, Singapore, theoretical weight. As a result, market sources said that $590/mt CFR is the lowest possible for imported rebar in Singapore at the moment, though rare bids are at least $10/mt lower. Transaction activities for rebar in Southeast Asia have been quiet amid the slack demand from downstream users.
Ex-China rebar offer prices have been heard at $610-640/mt FOB, for November shipment, down by $5/mt on average compared to September 2.
“The rebar prices in the local market have risen in the traditional peak season, though demand has not improved as much as market players expected, while they are quite confident in the market performance after the Mid-Autumn Day holiday,” an international trader said.
Average rebar spot prices in China have gained RMB 67/mt ($9.7/mt) compared to September 2, standing at RMB 4,097/mt ($594/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 9, rebar futures at the Shanghai Future Exchange are standing at RMB 3,791/mt ($549/mt), increasing by RMB 154/mt ($22.3/mt) or 4.2 percent since September 2.
$1 = RMB 6.9098