During the given week, ex-China rebar offer prices have moved down significantly as the poor performance of the real estate industry has exerted a negative impact on the demand for rebar in the domestic market. At the same time, Southeast Asia’s import rebar market has been quiet this week as customers have purchased last week and have been enough inventories.
Ex-China rebar offer prices from small mills and traders have been heard at $500-520/mt FOB, for July shipment, decreasing by $30/mt on average compared to May 19. “During the given week, rebar prices in the Chinese domestic market have moved down amid the slack demand from downstream users, while economic development in China has been negatively impacted by the slowdown in the real estate industry,” a trader said.
Average rebar spot prices in China have lost RMB 134/mt ($19/mt) compared to May 19, coming to RMB 3,633/mt ($513/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 26, rebar futures at the Shanghai Future Exchange are standing at RMB 3,493/mt ($494/mt), moving down by RMB 152/mt ($21.5/mt) or 4.2 percent since May 19.
At the same time, offer prices of ex-Middle East rebar have been heard at $560/mt CFR Singapore, theoretical weight, remaining stable from the deal for 25,000 mt reported at this level last Friday. Buyers have been unwilling to conclude purchases due to their relatively high inventory levels. Meanwhile, the decreasing trend of offer prices for ex-China rebar has caused market players to maintain a wait-and-see stance. Some ex-Malaysia offers have been reported at $560/mt CFR Singapore, down from $565-575/mt CFR last week. No new deals have been reported to Hong Kong after two transactions at $555-560/mt CFR on actual weight basis last week.
$1 = RMB 7.076