During the past week, ex-China rebar offer prices have remained stable, as have ex-ASEAN prices, even though the market mood has been rather weak due to slack demand and some declines in futures prices in China.
Ex-China rebar offer prices have been heard at $460-470/mt FOB, remaining stable on average compared to January 30.
During the given week, widespread constructions site closures have resulted in a notable contraction in apparent consumption in China. Since the Chinese New Year holiday (February 14-23) is approaching, many players left have the market. Meanwhile, widespread snowy weather has hit China, which will weaken the support for rebar prices further. The demand for rebar from downstream users will be very quiet in the coming week, while it is thought that rebar prices in the Chinese domestic market will move sideways.
At the same time, offer prices of ex-China rebar stand at $480-485/mt CFR Singapore, theoretical weight, while ex-Malaysia rebar is still available at $485/mt DAP, Singapore
In the Hong Kong market, buyers’ target price is stable at $470/mt CFR, actual weight, while offer prices at not below $482-485/mt CFR, actual weight.
Average rebar spot prices in China have lost RMB 23/mt ($3.3/mt) compared to January 30, standing at RMB 3,230/mt ($464/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 6, rebar futures at Shanghai Futures Exchange are standing at RMB 3,077/mt ($442/mt), decreasing by RMB 51/mt ($7.3/mt) or 1.6 percent since January 30, while decreasing by 0.65 percent compared to the previous trading day, February 5.