During the past week, ex-China rebar offer prices have moved sideways, although ASEAN mills have been trying to increase prices. Most market sources agree that there are no signs of an improvement, with prices expected to soften.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, for June shipment, remaining stable on average compared to April 11.
In the given week, the average rebar prices in the Chinese domestic market have seen declines amid decreasing rebar futures prices. Premier Li Qiang said at a meeting on April 17 that “it is necessary to pay attention to the appropriate and key time windows, promoting all aspects of the policy measures early and fast, aiming to form a positive impact on market expectations.” This might positively affect market sentiments in the near future. However, speculative investors in the rebar futures market have not reacted to the news yet. The tariff issue between the US and China has weakened market sentiments in general, while inventory consumption has continued smoothly, resulting in slight decreases in inventory levels amid the decreasing production capacity utilization rates of rebar producers. It is thought that rebar prices in the Chinese domestic market will likely edge down in the coming week.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $485/mt DAP, theoretical weight, up by $10/mt over the past week, translating to $475-480/mt CFR. But buyers’ counteroffers for rebar are still at $460-470/mt CFR, theoretical weight, while lower prices could also be heard, signaling that there is no acceptance of any increase and that the mood remains bearish.
In the Hong Kong market, buyers’ target prices stand at $450-455/mt CFR, actual weight, decreasing by $2.5/mt week on week.
Average rebar spot prices in China have lost RMB 23/mt ($3.2/mt) compared to April 11, standing at RMB 3,227/mt ($448/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,076/mt ($427/mt), decreasing by RMB 55/mt ($7.6/mt) or 1.76 percent since April 11, while down 0.81 percent compared to the previous trading day, April 17.
$1 = RMB 7.2069