During the given week, ex-China rebar offer prices have edged down amid declining rebar futures prices and weak demand, even though production has posted some decline and mills have continued to suffer losses.
Ex-China rebar offer prices have been heard at $475-485/mt FOB, edging down by $5/mt on average compared to July 24.
During the given week, in the Southeast Asian market, rising crude oil costs pushed up freight rates, with bulk and general cargo vessel rates gradually edging higher. However, high summer temperatures weakened downstream demand for rebar.
In the given week, rebar futures prices at the Shanghai Futures Exchange negatively affected market sentiment and contributed to declining rebar prices in the spot market. Rebar production declined during the given period, providing some support for prices. However, inventories still increased amid sluggish demand in the traditional off-season. On July 27, coke prices recorded a second round of declines, weakening cost support for rebar prices. Currently, rebar producers continue to suffer losses, which might result in more maintenance shutdowns and provide some support for prices in the near future. Rebar prices in the Chinese domestic market are expected to continue softening in early to mid-August, while a rebound is likely in late August amid improved demand.
Meanwhile, offer prices for ex-Malaysia rebar have been heard at $505-510/mt DAP Singapore, theoretical weight, down $2.5/mt on average compared to July 24, which translates to $500/mt CFR. Offer prices for ex-China rebar stood at $500-505/mt CFR Singapore, prompt shipment, theoretical weight, down $2.5/mt compared to the level recorded on July 24.
In the Hong Kong market, buyers' target price stood at $480/mt CFR, actual weight, moving sideways on average compared to July 24, while offer prices for ex-Malaysia rebar have been heard at $500/mt CFR, actual weight, declining by $5/mt on average compared to July 24.
Average rebar spot prices in China have declined by RMB 33/mt ($4.9/mt) compared to July 24, standing at RMB 3,147/mt ($463.5/mt) ex-warehouse, according to SteelOrbis' information.
As of July 31, rebar futures at the Shanghai Futures Exchange stand at RMB 3,004/mt ($453/mt), decreasing by RMB 72/mt ($10.6/mt), or 2.3 percent, since July 24, while decreasing by 0.76 percent compared to the previous trading day, July 30.
$1 = RMB 6.7894
