During the given week, ex-China rebar offer prices have moved down sharply amid the hike in interest rates by the US Federal Reserve, which resulted in a bearish environment in overseas markets, while futures prices in the Chinese market have also posted big declines, reflecting the weakening of sentiments.
Ex-China rebar offer prices have been heard at $610-630/mt FOB, May shipment, decreasing by $30/mt on average compared to March 17. “The decreasing pace of rebar inventory levels has slowed down, signaling prevailing cautious sentiments among market players, while import iron ore prices also saw decreases, weakening the support for rebar prices the from cost side. Rebar futures prices at Shanghai Futures Exchange indicated a slight decline following previous big decreases, providing support for the rebar market,” an international trader said.
The tradable level for imported rebar in Singapore has remained at $640-645/mt CFR theoretical weight. Ex-Malaysia rebar offers have been heard at $660/mt delivered, Singapore, theoretical weight, translating to $650/mt CFR. But buyers in Singapore have been expecting offer prices below $640/mt CFR Singapore soon. Market participants think there will be a new round of purchases in the near future.
Expectations for lower prices in Singapore have been connected with lower ex-Middle East rebar prices seen by some buyers in Hong Kong recently. Offer prices of ex-Middle East and ex-China rebar have been heard at $660/mt CFR Hong Kong, actual weight early this week, but some sources said that one lot of ex-Saudi Arabia rebar totaling 50,000 mt has been taken by a large trader for the Hong Kong market, while the price could be at $650/mt CFR actual weight or even a bit lower.
Average rebar spot prices in China have lost RMB 100/mt ($14.6/mt) compared to March 17, standing at RMB 4,210/mt ($615.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 24, rebar futures at the Shanghai Future Exchange are standing at RMB 4,107/mt ($600.4/mt), moving down by RMB 155/mt ($22.7/mt) or 3.6 percent since March 17.
$1 = RMB 6.8374