During the past week, ex-China rebar offer prices have edged up slightly amid the increases in coking coal and coke prices due to safety inspections. The approaching miliary parade on September 3 will result in production cuts in northern China from mid-August, which will bolster rebar prices firmly.
Ex-China rebar offer prices have been heard at $460-480/mt FOB, up $2.5/mt on average compared to August 1.
During the given week, rebar futures prices have edged up slightly as most producers received sufficient orders in August. Meanwhile, rebar futures prices have seen increases, exerting a positive impact on rebar prices in the spot market. The expected reduction of rebar production will bolster prices. Recently, the National Energy Administration implemented inspections of coal mines, which pushed up coking coal and coke prices, providing solid support for rebar prices from the cost side. It is thought that rebar prices in the Chinese domestic market will likely edge up in the coming week.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $480/mt DAP, theoretical weight, increasing by $5/mt on average compared to August 1. This translates to $470-475/mt CFR and has been confirmed in small-volume deals. Offer prices of ex-China rebar have stood at $490-500/mt CFR, theoretical weight, being too high for customers in Singapore.
In the Hong Kong market, buyers’ target price stood at $470/mt CFR, actual weight, moving up by $5/mt on average compared to August 1, while offer prices of ex-Malaysia rebar have been heard at $480/mt CFR, actual weight, up $5/mt on average week on week.
Average rebar spot prices in China have remained stable compared to August 1, standing at RMB 3,327/mt ($466/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 8, rebar futures at Shanghai Futures Exchange are standing at RMB 3,213/mt ($450/mt), increasing by RMB 10/mt ($1.4/mt) or 0.3 percent since August 1, while down 0.71 percent compared to the previous trading day, August 7.
$1 = RMB 7.1382
