During the given week, ex-China rebar offer prices have moved sideways compared to the previous week, but sentiments locally have improved amid news of production cuts and so sellers hope for some gradual increase in the export market, if the local sentiments are sustain.
Ex-China rebar offer prices have been heard at $440-460/mt FOB, for August shipment, moving sideways on average compared to June 20.
During the given week, rebar futures prices have moved up amid the improved market sentiments as the Central Financial Committee (CFCC) stated that China will focus on Chinese enterprises’ low-priced and unorganized competition, aiming to regulate excessive competition. Steelmakers’ production of rebar has decreased slightly, easing the pressure from the supply side. However, the inventory of rebar has seen slight rises, reflecting the slack demand from downstream users. It is thought that rebar prices in the Chinese domestic market will continue to edge up slightly in the coming week.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $460/mt DAP, theoretical weight, remaining unchanged on average compared to June 27. This price translates to $450-455/mt on CFR basis. Offer prices of ex-China rebar stand at $460/mt CFR, theoretical weight, up $5/mt on average week on week.
In the Hong Kong market, buyers’ counter-offer target prices stand below $450/mt CFR, actual weight, while offer prices of ex-Malaysia rebar have been heard at $460/mt CFR, actual weight, remaining stable on average week on week.
Average rebar spot prices in China have gained RMB 60/mt ($8.4/mt) compared to June 27, standing at RMB 3,177/mt ($444/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 4, rebar futures at Shanghai Futures Exchange are standing at RMB 3,072/mt ($429/mt), increasing by RMB 77/mt ($10.7/mt) or 2.6 percent since June 27, while up 0.23 percent compared to the previous trading day, July 3.
$1 = RMB 7.1535
