During the given week, ex-China rebar offer prices have decreased slightly compared to the previous week and though ASEAN mills are trying to hold prices for now, further declines are inevitable.
Ex-China rebar offer prices have been heard at $445-460/mt FOB, July shipment, decreasing by $5/mt on average compared to May 30.
During the given week, bearish sentiments prevailed among market players as June is regarded as the traditional offseason for steel industry due to the high temperature. As it is approaching to the plum rainy season in lower and middle reaches of the Yangtze River, the demand for rebar is expected to slacken due to the slow-down in construction activities, which will negatively affect the prices in the coming period. Coke prices have moved down, weakening the support to rebar prices from cost side. It is thought that rebar prices in the Chinese domestic market will edge down in the coming week.
In Singapore market, the offer prices of ex-Malaysia rebar have been heard at $465/mt DAP, theoretical weight, stable compared to last week. Offer prices of ex-China rebar stood at $460-465/mt CFR, theoretical weight, down $5/mt week on week.
In Hong Kong market, buyers’ counter-offer target price stood stable at $455/mt CFR, actual weight, while offer prices of ex-Malaysia rebar have been heard at $465/mt CFR, actual weight, down $5/mt week on week.
Average rebar spot prices in China have gained RMB 4/mt ($0.6/mt) compared to May 30, standing at RMB 3,157/mt ($438.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 6, rebar futures at Shanghai Futures Exchange are standing at RMB 2,975/mt ($413/mt), increasing by RMB 14/mt ($1.9/mt) or 0.5 percent since May 30, while up 0.57 percent compared to the previous trading day, June 5.
$1 = RMB 7.1845
