During the given week, ex-China rebar offer prices have moved sideways, but the mood in Asia has been rather negative as demand is weak in both the local market in China and in Southeast Asia.
Ex-China rebar offer prices have been heard at $460-470/mt FOB, moving sideways on average compared to January 23.
During the given week, since the Chinese New Year holiday (February 14-23) is approaching, demand for rebar has slackened further, resulting in quiet transaction activity. Meanwhile, another wave of cold weather has hit China, negatively affecting the demand for rebar. At the same time, metal futures prices have seen sharp decreases on January 30 following the plunge in gold and silver prices in the global market last night, which exerted a negative impact on market sentiments. It is expected that rebar prices in the Chinese domestic market will soften in the coming week.
Meanwhile, the offer prices of ex-Malaysia rebar have been heard at $485/mt DAP Singapore, theoretical weight, down $5/mt on average compared to January 23. Offer prices of ex-China rebar stand at $480-485/mt CFR Singapore, theoretical weight, moving down by $5-10/mt compared to January 23.
In the Hong Kong market, buyers’ target price stands at $470/mt CFR, actual weight, while offer prices of ex-Malaysia and ex-China rebar have been heard at $485-490/mt CFR, actual weight.
Average rebar spot prices in China have lost RMB 4/mt ($0.6/mt) compared to January 23, standing at RMB 3,253/mt ($467/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 30, rebar futures at Shanghai Futures Exchange are standing at RMB 3,128/mt ($449/mt), decreasing by RMB 14/mt ($2/mt) or 0.4 percent since January 23, while decreasing by 0.48 percent compared to the previous trading day, January 29.
$1 = RMB 6.9678