During the given week, ex-China rebar offer prices have moved sideways amid rising rebar futures prices. Even though some traders have given small discounts to Asian buyers this week, in general the mood in the rebar market has improved and market sources await a gradual rebound in the near future if demand in the local Chinese market remains firm.
Ex-China rebar offer prices have been heard at $450-470/mt FOB, moving sideways on average compared to October 17. During the given week, rebar futures prices have edged up slightly, bolstering market sentiments. Meanwhile, Chinese steelmakers have accepted price hikes for coke, which will be implemented as of Monday, October 27, providing support for rebar prices from the cost side. Moreover, coking coal prices have increased, exerting a positive impact on rebar prices. It is thought that rebar prices in the Chinese domestic market will likely rebound in the coming week.
Meanwhile, offer prices of ex-Malaysia rebar have been heard at $470-475/mt DAP Singapore, theoretical weight, remaining stable on average week on week, and translating to $465/mt CFR. Offer prices of ex-China rebar stand at $465-475/mt CFR Singapore, theoretical weight, down $5/mt week on week.
In the Hong Kong market, buyers’ target price is at $460/mt CFR, actual weight, moving down by $5/mt on average compared to October 17, while offer prices of ex-Malaysia rebar have been heard at $470-475/mt CFR, actual weight, decreasing also by $5/mt on average week on week.
Average rebar spot prices in China have increased by RMB 20/mt ($2.8/mt) compared to October 17, standing at RMB 3,170/mt ($446.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 24, rebar futures at Shanghai Futures Exchange are standing at RMB 3,046/mt ($429/mt), increasing by RMB 9/mt ($1.3/mt) or 0.3 percent since October 17, while down 0.75 percent compared to the previous trading day, October 23.
$1 = RMB 7.0928
