During the past week, ex-China rebar offers prices have edged down slightly, reflecting rather weak demand and lower raw material prices. But, in general, there is a stable to slightly higher outlook for the rest of April amid expectations for somewhat better demand, at least in the local Chinese market.
Ex-China rebar offer prices have been heard at $475-485/mt FOB, edging down by $2.5/mt on average compared to April 3.
During the given week, major Chinese steelmaker Baosteel has raised its local base prices by RMB 100/mt ($14.6/mt) for wire rod and bars, for delivery in May, bolstering market sentiments to a certain degree. According to China's National Bureau of Statistics (NBS), in March this year China's producer price index (PPI) for its ferrous metal smelting and rolling sector decreased by 2.5 percent year on year, 0.9 percentage points slower compared to the declining pace recorded in February, while edging up by 0.3 percent month on month, reflecting the impact of rising oil prices due to the war in the Middle East on steel prices. It is thought that rebar prices in the Chinese domestic market may edge up in the coming week amid the recovery in construction activities in the traditional peak season of April. However, demand is unlikely to be very strong, so only a gradual price increase is possible. If consumption levels do not change, longs prices from China will fluctuate within a limited range.
Offer prices of ex-China rebar stand at $505-510/mt CFR Singapore, for prompt shipment, theoretical weight, down $2.5/mt on average compared to April 3, while ex-Malaysia rebar offers have been heard at $510-515/mt DAP.
In the Hong Kong market, buyers’ target prices have stood at $495-500/mt CFR, actual weight, decreasing by $2.5/mt on average compared to April 3, while small-volume deals are possible at $500/mt CFR for Chinese rebar.
Average rebar spot prices in China have lost RMB 10/mt ($1.5/mt) compared to April 3, standing at RMB 3,237/mt ($471/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,099/mt ($451/mt), increasing by RMB 2/mt ($0.29/mt) or 0.06 percent since April 3, while decreasing by 0.23 percent compared to the previous trading day, April 9.
$1 = RMB 6.8654
