During the past week, ex-China rebar offer prices have moved up amid local market support and higher costs, while rebar offers on CFR basis in Southeast Asia have increased even more due to freight rate increases.
Ex-China rebar offer prices have been heard at $465-485/mt FOB, increasing by $10/mt on average compared to March 6.
During the given period, the ongoing war in the Middle East has pushed up crude oil prices sharply, also pushing up shipping and logistics costs, and so market players think the conflict might bolster rebar prices firmly. On March 12, BHP workers in the Pilbara region initiated voting on a strike, which might reduce the supply of seaborne iron ore and bolster prices. Meanwhile, China Mineral Resources Group (CMRG), the state-owned iron ore trading arm, has sent a notice to major Chinese steel mills that they will have to stop accepting delivery of BHP Billiton Newman fines from late next week. Both news reports relating to BHP Billiton will provide support for iron ore prices. At the same time, March is regarded as the traditional peak season for the demand for rebar as construction activities will resume amid the warmer weather. It is thought that rebar prices in the Chinese domestic market will continue to increase in the coming week.
Offer prices of ex-China rebar stand at $500-510/mt CFR Singapore for prompt shipment, theoretical weight, moving up by $17.5/mt compared to March 6. Meanwhile, offer prices of ex-Malaysia rebar have been heard at $500/mt DAP Singapore, theoretical weight.
In the Hong Kong market, the tradable price level has been assessed by buyers at $485-490/mt CFR, actual weight, rising by $12.5/mt on average compared to March 6, while offer prices of ex-Malaysia and ex-China rebar have been heard at $500-510/mt CFR actual weight.
Average rebar spot prices in China have gained RMB 43/mt ($6.2/mt) compared to March 6, standing at RMB 3,253/mt ($471/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 13, rebar futures at Shanghai Futures Exchange are standing at RMB 3,142/mt ($455/mt), increasing by RMB 54/mt ($7.8/mt) or 1.75 percent since March 6, while increasing by 0.58 percent compared to the previous trading day, March 12.
$1 = RMB 6.9007
