During the given week, ex-China rebar offer prices have edged down after local and futures prices declines on Friday. Even though some ex-ASEAN suppliers have been trying to push prices up this week, the drop in China has exerted negative pressure on the mood in the import rebar market in Southeast Asia.
Ex-China rebar offer prices have been heard at $510-530/mt FOB, November delivery, decreasing by $10/mt on average compared to September 1.
“During the given week, import activities in Singapore market have been sluggish, while production of rebar in China has decreased week on week, and relatively high-priced iron ore and coke have provided solid support for rebar prices, though the demand has not seen significant improvements yet. China has issued several stimulus policies to boost the real estate sector. Market sentiments will indicate improvements and will exert a positive impact on the demand for rebar. Moreover, production restrictions are expected to be implemented in the future, which will bolster rebar prices,” a trader said.
Offer prices of ex-Malaysia rebar have been heard at $530-535/mt CFR Singapore, theoretical weight, up by $5-10/mt over the past week, while offer prices of ex-Vietnam rebar have been heard at $550/mt CFR Singapore. In addition, prices of ex-Middle East rebar have been heard at $535/mt CFR Singapore, theoretical weight, indicating that suppliers need to push volumes and can agree on low prices in Asia.
The reference price for imported rebar in Singapore has increased by $5/mt on the lower end over the past week to $530-535/mt CFR.
Average rebar spot prices in China have lost RMB 7/mt compared to September 1, standing at RMB 3,783/mt ($525/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 8, rebar futures at the Shanghai Future Exchange are standing at RMB 3,717/mt ($515.5/mt), decreasing by RMB 61/mt ($8.5/mt) or 1.6 percent since September 1.
$1 = RMB 7.215