During the given week, ex-China rebar offer prices have moved down compared to the previous week, amid pressure from slow demand in the local market, though more cities in China have been announcing production cuts due to high levels of pollution.
Ex-China rebar offer prices have been heard at $470-480/mt FOB, for January shipment, moving down by $10/mt on the upper end compared to November 15.
During the given week, rebar prices in the Chinese domestic market have fluctuated within a limited range amid support from increasing iron ore prices, while demand from downstream users has been slack due to the cold weather. The downtrend in China’s stock market on November 22 has negatively affected sentiments in the rebar market. Lately, many cities in the provinces of Hebei, Henan and Anhui have initiated level II emergency responses, aiming to alleviate pollution, which will bolster rebar prices to a certain degree due to the anticipated decreases in production, though, on the other hand, demand may be weakened. It is thought that rebar prices in the Chinese domestic market will edge down slightly in the coming week.
In Singapore, import offer prices of ex-Malaysia rebar have been heard at $500-510/mt CFR, theoretical weight, stable from last week, but some Chinese sellers have voiced $495/mt CFR Singapore.
In the Hong Kong market, offer prices of ex-China rebar have been heard at $500-505/mt CFR, actual weight, versus $505/mt CFR last week.
Average rebar spot prices in China have gained RMB 3/mt ($0.4/mt) compared to November 15, standing at RMB 3,420/mt ($476/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 22, rebar futures at Shanghai Futures Exchange are standing at RMB 3,277/mt ($456/mt), increasing by RMB 45/mt ($6.3/mt) or 1.4 percent since November 15, while down 1.5 percent compared to the previous trading day, November 21.
$1 = RMB 7.1942