During the given week, ex-China rebar offer prices have moved down sharply compared to the previous week, following the sharp decline of around RMB 199/mt ($28/mt) in futures prices this week.
Ex-China rebar offer prices have been heard at $455-465/mt FOB, for October shipment, decreasing by $22.5/mt on average compared to August 9. During the given week, rebar futures prices in China have moved down significantly, negatively affecting market sentiments. Since the domestic economic data issued on August 15 was weaker than expected, market players feel pessimistic as regards the future prospects for the rebar market. Moreover, rebar producers’ production cuts have not reduced the high inventories yet and so there could be more production halts in the future. Raw material prices are anticipated to move down further, which will weaken the support for rebar prices. It is expected that rebar prices in the Chinese domestic market may fluctuate within a limited range in the coming week, following big declines this week, market sources believe.
Offer prices of ex-Malaysia rebar have been heard at $480/mt DAP Singapore, theoretical weight, moving down by $20/mt on average week on week. This price translates to $470-475/mt on CFR basis. Similar levels and even levels $5/mt lower have been available from China.
Ex-China rebar has also been available at $470/mt CFR Hong Kong, actual weight, against the offer prices at $500/mt CFR in the previous week, while buyers in the market believe there will be more room for rebar prices to edge down in the coming period.
Average rebar spot prices in China have lost RMB 134/mt ($18.8/mt) compared to August 9, standing at RMB 3,153/mt ($441/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 16, rebar futures at Shanghai Futures Exchange are standing at RMB 3,078/mt ($431/mt), decreasing by RMB 199/mt ($28/mt) or 6.1 percent since August 9, while down 0.71 percent compared to the previous trading day, August 15.
$1 = RMB 7.1464
