During the given week, ex-China rebar offer prices have edged up slightly compared to the previous week amid futures rises and better sentiments, based on production cuts. But in the Asian import market, a few deals have been confirmed for ex-Malaysia rebar, which has been the most competitive lately.
Ex-China rebar offer prices have been heard at $445-460/mt FOB, up $2.5/mt on average compared to July 11. During the given week, rebar futures prices have moved up, exerting a positive impact on the prices in spot market. However, demand for rebar from downstream users has remained sluggish due to the high temperature and heavy rains in some regions of China, which weakened the support to the prices. The coke prices have seen rises, which will bolster rebar prices from cost side. It is thought that rebar prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
In Singapore market, the offer prices of ex-Malaysia rebar have been heard at $460-465/mt DAP, theoretical weight, decreasing by $2.5/mt on average compared to July 11. A few deals have been confirmed for 10,000 mt at $460/mt DAP, which translates to $450-455/mt CFR. Offer prices of ex-China rebar stood at $465-470/mt CFR, theoretical weight, moving up by $7.5/mt on average week on week, being not competitive at the moment.
In Hong Kong market, buyers’ price idea was at $455/mt CFR, actual weight, moving sideways on average compared to July 11, while offer prices of ex-Malaysia rebar have been heard at $465/mt CFR, actual weight, remaining stable on average week on week. But market sources said that it is possible to achieve $460/mt CFR Hong Kong.
Average rebar spot prices in China have gained RMB 30/mt ($4.2/mt) compared to July 11, standing at RMB 3,247/mt ($454/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,147/mt ($440/mt), increasing by RMB 14/mt ($2.0/mt) or 0.45 percent since July 11, while up 0.74 percent compared to the previous trading day, July 17.
$1 = RMB 7.1498
