During the given week, ex-China rebar offer prices have moved on an upward trend supported by rising futures and local spot prices. However, buyers in Southeast Asia have not been ready for increases, voicing only lower bids, not needing to purchase new volumes for now.
Ex-China rebar offer prices from non-first tier mills have been heard at $530-540/mt FOB for July shipment, increasing by $15/mt on average compared to June 2.
“During the given week, rebar futures prices have indicated an overall upward trend amid the news of steelmakers’ production cuts in some regions of China, while the expected hot and rainy weather and in the near future has exerted a negative impact on market sentiment. Demand for rebar is unlikely to see significant improvement, though low inventory levels may bolster rebar prices,” a trader said.
Average rebar spot prices in China have gained RMB 87/mt ($12.2/mt) compared to June 2, standing at RMB 3,767/mt ($530/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 9, rebar futures at the Shanghai Future Exchange are standing at RMB 3,711/mt ($522/mt), moving up by RMB 115/mt ($16.2/mt) or 3.2 percent since June 2.
Cautious sentiments have still prevailed among buyers in the Southeast Asian market and they have been voicing lower bids. For instance, the tradable level for imported rebar in Singapore has been assessed at $550/mt CFR theoretical weight, though offers have remained mainly at $560/mt CFR.
Meanwhile, offer prices of ex-UAE rebar have been heard at $560/mt CFR Hong Kong, actual weight.
$1 = RMB 7.1115