Ex-China rebar offer prices have been heard at $460-470/mt FOB, decreasing by $2.5/mt on average compared to January 16 mainly due to weak demand in the local market amid cold weather.
During the given week, a wave of extremely cold weather has hit China, exerting a negative impact on the demand for rebar. Meanwhile, the production of rebar has increased slightly, resulting in increasing inventories amid the rapidly declining apparent demand due to heavy snow in northern China. Traders have been willing to sell at lower prices, resulting in downward pressure on rebar prices. It is thought that rebar prices in the Chinese domestic market will move sideways in the coming week.
Meanwhile, offer prices of ex-China rebar stand at $480-490/mt CFR Singapore, theoretical weight. In the Hong Kong market, buyers’ target price stands at $470/mt CFR, actual weight, down $5/mt on average compared to January 16, while offer prices have been heard at $485-490/mt CFR, actual weight.
Average rebar spot prices in China have lost RMB 40/mt ($5.7/mt) compared to January 16, standing at RMB 3,257/mt ($465/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,142/mt ($451/mt), increasing by RMB 19/mt ($3.6/mt) or 0.6 percent since January 9, while increasing by 0.06 percent compared to the previous trading day, January 22.
$1 = RMB 6.9929
