During the past week, ex-China rebar offer prices have moved sideways, as well as ex-ASEAN prices. But some traders have been trying to push up offers for buyers in Singapore, seeing firm sentiments and increasing futures prices in China. At the same time, demand in Asia has remained slack and buyers are still waiting for discounts.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, remaining stable on average compared to November 21.
During the given week, rebar futures prices have moved up, exerting a positive impact on the prices in the spot market. Coke prices are expected to decrease as of December 1, which will weaken the support for rebar prices from the cost side. Demand for rebar may be slack during the traditional cold winter offseason, which will negatively affect prices. Meanwhile, some buyers in Southeast Asia may halt rebar purchases approaching the Christmas holiday. It is thought that rebar prices in the Chinese domestic market may soften in the coming week.
Meanwhile, the offer prices of ex-Malaysia rebar have been heard at $485-490/mt DAP Singapore, theoretical weight, or $480/mt CFR, moving sideways week on week. Offer prices of ex-China rebar stand at $470-475/mt CFR Singapore, theoretical weight, edging up by $5/mt compared to the previous week.
In the Hong Kong market, buyers’ target prices stand at $455-460/mt CFR, actual weight, while offer prices of ex-Malaysia rebar have been heard at $490/mt CFR, actual weight, and China’s offers have been mainly at $475/mt CFR.
Average rebar spot prices in China have gained RMB 40/mt ($5.6/mt) compared to November 21, standing at RMB 3,300/mt ($465/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 28, rebar futures at Shanghai Futures Exchange are standing at RMB 3,110/mt ($438/mt), increasing by RMB 53/mt ($7.5/mt) or 1.7 percent since November 21, while up 0.71 percent compared to the previous trading day, November 27.
$1 = RMB 7.0789