During the given week, ex-China rebar offer prices have remained stable compared to the previous week due to unmoved local market. Other Asian suppliers have also followed the current trend, hoping that prices have reached a bottom for now.
Ex-China rebar offer prices have been heard at $445-460/mt FOB, September shipment, remaining unchanged on average compared to June 13.
During the given week, demand for rebar remained sluggish amid the continuous rainy weather and high summer temperatures. Coke prices are expected to see further decreases early next week, which will weaken the support to rebar prices from cost side. However, Tangshan, Chinese major steelmaking hub, is required to implement production control amid environmental protection requirements, which will reduce rebar output and bolster its prices in the near future. Rebar futures prices have seen slight rises as there are speculative funds into the market, which will exert a positive impact on the spot market. It is thought that rebar prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
In Singapore market, the offer prices of ex-Malaysia rebar have been heard at $460-465/mt, DAP, theoretical weight, translating to $455/mt CFR. Offer prices of ex-China rebar stood at $460/mt CFR, theoretical weight.
In Hong Kong market, buyers’ counter-offer target price stood below $455/mt CFR, actual weight, moving sideways on average compared to June 13, while offer prices of ex-Malaysia rebar have been heard at $460-465/mt CFR, actual weight.
Average rebar spot prices in China have lost RMB 7/mt ($1/mt) compared to June 13, standing at RMB 3,133/mt ($435/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 20, rebar futures at Shanghai Futures Exchange are standing at RMB 2,992/mt ($416/mt), increasing by RMB 23/mt ($3.2/mt) or 0.8 percent since June 13, while up 0.23 percent compared to the previous trading day, June 19.
$1 = RMB 7.1695