During the given week, demand for rebar in major Asian importing countries of Hong Kong and Singapore has started to revive.
Turkish mill has managed to sell 55,000 mt of rebar to Hong Kong at $440/mt CFR actual weight for October shipment, SteelOrbis has learned, while offers have been heard at $445/mt CFR Hong Kong. The deal price level has been almost in line with expectations in the market.
Singapore is holding general elections on July 10, after that the construction activities will likely to improve, which will bolster the demand for rebar in the near future. Offers from Turkey have been at $430-440/mt CFR Singapore theoretical weight and the workable level is $425/mt CFR or slightly lower, sources said, which is almost similar to the deal at actual weight to Hong Kong.
Though demand for ex-China rebar has still been slack in the international market, the rising local rebar prices and the appreciation of the Chinese currency made steelmakers raise their already high offer prices for rebar. Ex-China rebar offers from mills currently stand at $455-470/mt FOB, moving up by $2.5/mt on average week on week. “The bullish stock market exerted a positive impact on market players’ sentiments, though rains and floods continued in China,” a trader said.
Average rebar spot prices in China have gained RMB 67/mt ($9.6/mt) week on week to RMB 3,777/mt ($540/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 10, rebar futures at the Shanghai Future Exchange are standing at RMB 3,690/mt ($512/mt), increasing by RMB 71/mt ($10.2/mt) or 2.0 percent since July 3.
$1 = RMB 6.994