During the given week, ex-China rebar offer prices have moved sideways as the uptrend in domestic market has been stopped by decline in futures and limited demand. However, ex-ASEAN rebar offers have increased further and some buyers may accept them with limited allocation in the market.
Ex-China rebar offer prices have been heard at $560-580/mt FOB, for February shipment, moving sideways on average compared to December 8. During the given week, rebar prices in the Chinese domestic market moved down amid the snowy and rainy weather, rebar futures prices declined by 3.1 percent week on week, exerting a negative impact on spot market. “Demand for rebar has slackened due to the cold weather negatively affecting construction activities, while coke prices indicated rises, which provided certain support to rebar from cost side,” an international trader said.
Offer prices of ex-Malaysia rebar have been heard at $570/mt DAP, theoretical weight, Singapore, up by $10/mt over the week. This level translates to $560-565/mt CFR and can be accepted by some buyers who need to restock, though no deals have been heard yet.
Meanwhile, offer prices of ex-Vietnam rebar have remained high at $570-580/mt CFR Hong Kong, delivery in February. Currently, the inventory of rebar has been at relatively low levels, while part of buyers started to book rebar for the approaching Chinese New Year holiday (February 10-16). Some buyers thought current offer prices of rebar have been too high, though traders have been willing to bolster their offer prices.
Average rebar spot prices in China have lost RMB 63/mt ($9/mt) compared to December 8, standing at RMB 4,020/mt ($566/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 15, rebar futures at the Shanghai Future Exchange are standing at RMB 3,915/mt ($551/mt), decreasing by RMB 127/mt ($18/mt) or 3.1 percent since December 8.
$1 = RMB 7.0957
