During the given week, ex-ASEAN rebar prices have increased for Asian buyers and demand has revived as buyers have been ready to book, seeing the optimism in China. The overall allocation of rebar for exports in China has not been high recently, which has also provided support.
Ex-China rebar offer prices from small mills have been heard at $530-550/mt FOB, for January shipment, remaining stable on average compared to November 10. However, the large mills indicate prices at $550-560/mt FOB at the lowest.
During the given week, import iron ore prices have continued their rising trend, bolstering rebar prices from the cost side. At the same time, market sentiments have been bolstered by stimulus policies issued by China and the increasing trend of rebar futures prices. “However, the demand for rebar may be slack in the traditional offseason in late November, which will likely weaken the support for prices,” a trader said, adding that the Price Division of China’s National Development and Reform Commission (NDRC) has sent staff to the DCE to jointly study the strengthening of supervision of the iron ore market, which may curb the rising trend of iron ore prices and prevent rebar prices from further rises too.
Offer prices of ex-Malaysia rebar have been heard at $550-555/mt DAP Singapore, theoretical weight, which translates to $540-545/mt CFR, up by $5/mt over the past week. Some small tonnages have been traded at the lower end of the range, though in the next round of booking suppliers will target higher levels, according to market sources.
Also, ex-Malaysia rebar has been sold at $550-555/mt CFR actual weight to Hong Kong.
At the same time, offer prices of ex-Vietnam rebar has been heard at $530/mt FOB actual weight. The exports may ease the pressure from slack demand in the domestic market in Vietnam.
Average rebar spot prices in China have gained RMB 70/mt ($9.8/mt) compared to November 10, standing at RMB 4,047/mt ($564/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 17, rebar futures at the Shanghai Future Exchange are standing at RMB 3,929/mt ($548/mt), increasing by RMB 50/mt ($7/mt) or 1.3 percent since November 10.
$1 = RMB 7.1728