During the given week, ex-China rebar offer prices have moved sideways and market sources do not expect a visible improvement in the coming few weeks.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, moving sideways on average compared to December 19.
During the given week, cold weather hit China, so demand for rebar from downstream users has been slack. The production output of rebar decreased in the given period, thereby pressures from inventories haven’t been heavy, bolstering prices to a certain degree. Construction sites have been cautious in concluding purchases for rebar, exerting a negative impact on prices.
There will be environmental protection measures in some cities of Hebei province amid the pollution, which will reduce the supply of rebar and provide certain support to its prices in the near future. However, coke prices are likely to see further declines, likely negatively affecting rebar prices from the cost side. Since bullish and bearish factors are intertwined, it is thought that rebar prices in the Chinese domestic market will move sideways in the coming week.
Meanwhile, offer prices of ex-China rebar stood at $470-475/mt CFR Singapore, theoretical weight, stable from last week.
In Hong Kong market, buyers’ target price stood at $465/mt CFR, actual weight, up $5/mt on average compared to December 19, but offers from China have been still $470-475/mt CFR or above. Ex-Malaysia rebar has been heard at $490/mt CFR, actual weight.
Average rebar spot prices in China have remained unchanged compared to December 19, standing at RMB 3,290/mt ($467/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 26, rebar futures at Shanghai Futures Exchange are standing at RMB 3,118/mt ($443/mt), decreasing by RMB 1/mt ($0.14/mt) since December 19, while decreasing by 0.42 percent compared to the previous trading day, December 25.
$1 = RMB 7.0358
