During the past week, Asian rebar prices have fallen following the negative movements in the Chinese market.
Ex-China rebar offer prices from large mills have been heard at $450-465/mt FOB, decreasing by $2.5/mt on average compared to May 23, while some producers can give $440-445/mt FOB against a firm bid.
During the given week, cautious sentiments have prevailed among market players, while declining rebar futures prices have negatively affected rebar prices in the spot market. Following continuous declines, rebar prices have rebounded since May 29 amid improved apparent consumption and decreasing inventory levels. Due to the Dragon Boat Festival holiday (May 31-June 2), some downstream buyers have concluded purchases of rebar late in the week, bolstering prices to a certain degree. It is expected that rebar prices in the Chinese domestic market will be stable or edge up slightly in the coming week.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $465/mt DAP, theoretical weight, down by $5/mt from last week and down $10/mt from early this week, translating to $455-460/mt CFR. Offer prices of ex-China rebar have stood at $465-470/mt CFR, theoretical weight, down $5/mt week on week, while buyers are going to push for $450-455/mt CFR.
In the Hong Kong market, buyers’ counter-offer target price stands at $455/mt CFR, actual weight, down $7.5/mt on average compared to May 23, while offer prices of ex-Malaysia rebar have been heard at $470/mt CFR actual weight, down $10/mt week on week. Some negotiations for ex-China rebar have been heard at $460/mt CFR, actual weight.
Average rebar spot prices in China have lost RMB 74/mt ($10.3/mt) compared to May 23, standing at RMB 3,153/mt ($438/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 30, rebar futures at Shanghai Futures Exchange are standing at RMB 2,961/mt ($411.3/mt), decreasing by RMB 85/mt ($12/mt) or 2.8 percent since May 23, while down 0.34 percent compared to the previous trading day, May 29.
$1 = RMB 7.1848