During the given week, ex-China rebar offer prices have increased amid the improved mood in the local market and the lack of expectations of declines anytime soon.
Ex-China rebar offer prices have been heard at $465-470/mt FOB, increasing by $5-10/mt on average compared to January 9.
Zhou Lan, deputy governor and spokesman for the People's Bank of China stated in a State Council Information Office press release on January 15 that interest rates for various structural monetary policy tools will be cut by 0.25 percentage points, with one-year re-lending rates for various categories reduced to 1.25 percent, and interest rates for other maturity brackets adjusted accordingly. Moreover, he mentioned that there is still room for further reserve-requirement ratio cuts and interest rate reductions this year, boosting sentiments regarding the future prospects for the steel market.
Since the Chinese New Year holiday (February 15-23) is approaching, some downstream users may restock with rebar, which will bolster prices to a certain degree. It is expected that rebar prices in the Chinese domestic market will fluctuate within a limited range with a positive bias in the coming week.
Meanwhile, offer prices of ex-China rebar are standing at $490/mt CFR Singapore, theoretical weight, moving up by $5-10/mt compared to January 9, while Malaysian material has been priced at almost the same level or $5/mt higher.
In the Hong Kong market, buyers’ target price stands at $475/mt CFR, actual weight, up $5/mt on average compared to January 9, while most offers have been $15-20/mt higher.
Average rebar spot prices in China have lost RMB 3/mt ($0.4/mt) compared to January 9, standing at RMB 3,297/mt ($470/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 16, rebar futures at Shanghai Futures Exchange are standing at RMB 3,163/mt ($451/mt), increasing by RMB 19/mt ($3.6/mt) or 0.6 percent since January 9, while increasing by 0.06 percent compared to the previous trading day, January 15.
$1 = RMB 7.0078