During the given week, ex-China rebar offer prices have edged down slightly amid declining rebar futures prices, but prices are expected to be stable or go up slightly amid lower supply in the Asian market.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, decreasing by $5/mt on average compared to October 31.
During the given week, rebar futures prices have moved down, negatively affecting prices in the spot market. However, coke prices have moved up, providing support for rebar prices to a certain degree from the cost side. Steel mills may seek to raise their rebar prices in the near future as they consider that pressure from the supply side will not be so strong by the end of the year.
Meanwhile, offer prices of ex-China rebar have stood at $460-470/mt CFR Singapore, theoretical weight, down $2.5/mt compared to the previous week. But some ex-Malaysia rebar offers have been heard at $480-485/mt DAP, gaining $10/mt over the past week, but this has been not due to some positive changes in the market, but due to the hike in towage fees.
In the Hong Kong market, buyers’ target prices are at $460/mt CFR or just slightly above, actual weight, remaining stable on average compared to October 31, while the most competitive offer prices of ex-China rebar have been heard at $470-475/mt CFR, actual weight. At the same time, Malaysian rebar is offered at the same price level but on FOB basis, which translates to $485-490/mt CFR at the lowest.
Average rebar spot prices in China have decreased by RMB 30/mt ($4.2/mt) compared to October 31, standing at RMB 3,200/mt ($451/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 7, rebar futures at Shanghai Futures Exchange are standing at RMB 3,034/mt ($427/mt), decreasing by RMB 72/mt ($10.1/mt) or 2.3 percent since October 31, while up 0.2 percent compared to the previous trading day, November 6.
$1 = RMB 7.088
