During the given week, ex-China rebar offer prices have moved sideways as trading activity has been close to zero with most participants have already left the market ahead of the long holiday. However, the outlook for the post-holiday period is bearish.
Ex-China rebar offer prices have been heard at $460-470/mt FOB, remaining unchanged on average compared to February 6.
During the given week, market trading has virtually ground to a halt as the Chinese New Year holiday (February 14-23) is approaching. Rebar futures prices have seen slight declines, reflecting the prevailing cautious sentiments among market players. Inventories of rebar have been at relatively high levels, which will negatively affect rebar prices following the long holiday. It is expected that rebar prices in the Chinese domestic market will soften after the holiday.
Meanwhile, offer prices of ex-Malaysia rebar have been heard at $485/mt DAP Singapore, theoretical weight, moving sideways on average compared to February 6. Offer prices of ex-China rebar stand at $480-485/mt CFR Singapore, theoretical weight, remaining stable also compared to February 6.
In the Hong Kong market, buyers’ target price stands at $470/mt CFR, actual weight, while offers have been $10-20/mt higher.
Average rebar spot prices in China have remained stable compared to February 6, standing at RMB 3,230/mt ($464/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 13, rebar futures at Shanghai Futures Exchange are standing at RMB 3,055/mt ($440/mt), decreasing by RMB 22/mt ($3.2/mt) or 0.7 percent since February 5, while decreasing by 0.65 percent compared to the previous trading day, February 12.
$1 = RMB 6.9398
