During the given week, ex-China rebar offer prices have remained stable, and, though in some Asian markets there have been some slight increases in offers, the trend is unlikely to continue as overall demand is under pressure and the local Chinese market is likely to move sideways.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, moving sideways on average compared to November 14. During the given week, rebar futures prices have fluctuated within a limited range, bolstering prices in the spot market to a certain degree. Iron ore prices edged up at the beginning of the given week, pushing up rebar prices slightly. Rumors said China Mineral Resources Group (CMRG) and BHP have been negotiating a new contract, which would bolster iron ore prices in the short term. However, the demand for rebar from downstream users has been slack, exerting a negative impact on prices. On November 21, Shagang Group, China’s largest private steelmaker, announced stable offer prices for 16-20 mm HRB400 rebar at RMB 3,450/mt ($486/mt) for delivery on November 21-30, which will provide support for prices in the spot market. It is expected that rebar prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Meanwhile, offer prices of ex-Malaysia rebar have been heard at $485-490/mt DAP Singapore, theoretical weight, up $5/mt week on week, due to significant restrictions on trucks transportation. More offers from Malaysian have been reported on CFR basis - at $480/mt CFR. Offer prices of ex-China rebar have stood at $465-470/mt CFR Singapore, theoretical weight, edging up by $2.5/mt week on week.
In the Hong Kong market, buyers’ target for large volumes have been at $455-460/mt CFR, actual weight, but small deals for Chinese origin rebar to this destination were reported at $470/mt CFR actual weight. Offer prices of ex-Malaysia rebar have been heard at $490/mt CFR, actual weight, at the lowest.
Average rebar spot prices in China have gained RMB 43/mt ($6/mt) compared to November 14, standing at RMB 3,260/mt ($459/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 21, rebar futures at Shanghai Futures Exchange are standing at RMB 3,057/mt ($431/mt), increasing by RMB 4/mt ($0.6/mt) or 0.1 percent since November 14, while up 0.07 percent compared to the previous trading day, November 20.
$1 = RMB 7.0875