During the given week, ex-China rebar offer prices have moved down, while some sellers have attempted to give additional discounts to attract customers in Southeast Asia. However, overall demand in the region has remained limited despite some rare deals done.
Ex-China rebar offer prices from mills have been heard at $600-620/mt FOB, for November shipment, down by $10/mt on average compared to the previous week. But in negotiations Chinese rebar exporters have been more flexible.
For instance, a deal for at least 20,000 mt of ex-China rebar has been reportedly done to Hong Kong at $600/mt CFR on actual weight basis.
Offer prices of rebar from China to Singapore have been heard at $600-605/mt CFR, theoretical weight. Buyers said construction activities have slowed down in the local market, exerting a negative impact on the demand for rebar, while inventories are still relatively high. The tradable level for imported rebar in Singapore has remained at the last week’s level of $590/mt CFR. Offers for ex-ASEAN rebar have been higher than those from China as mills have been trying to increase prices, being sold out for October shipment. Offers to Singapore have been at around $605-620/mt CFR.
“Raw material prices moved up faster than the rise in finished steel prices in China, shrinking steelmakers’ profitability, and so they are unlikely to increase production capacity utilization rates, while traders may build up stocks ahead of the approaching National Day holiday (October 1-7), which will bolster rebar prices,” an international trader said.