During the given week, ex-China rebar offer prices have edged down amid decreasing rebar futures prices, driven by weak local demand and increasing inventories. Some better demand is expected by the end of the month, which is likely to support prices and prevent any significant declines in export prices.
Ex-China rebar offer prices have been heard at $465-475/mt FOB, down $5/mt on average compared to August 15.
During the given week, rebar futures prices have moved down, exerting a negative impact on market sentiments, weakening prices in the spot market. Rebar outputs have decreased due to the production cuts in Tangshan amid the approach of the military parade in early September, narrowing the gap between supply and demand. However, the high summer temperatures have exerted a negative impact on construction activities, resulting in increasing inventories and weakening the support for rebar prices. Traders think construction activities may resume when temperatures cool in late August, which will positively affect the demand for rebar in the near future. It is expected that rebar prices in the Chinese domestic market will rebound slightly in the coming week.
Meanwhile, the offer prices of ex-Malaysia rebar have been heard at $500/mt DAP Singapore, theoretical weight, translating to $490-495/mt CFR. The offer price for ex-Malaysia rebar is stable after the significant rise announced last week. Offer prices of ex-China rebar stand at $485-490/mt CFR Singapore, theoretical weight, down $10/mt week on week.
In the Hong Kong market, the tradable level has been assessed at $480/mt CFR, actual weight, moving down by $10/mt on average compared to August 15, while offer prices of ex-Malaysia rebar have been heard at $500/mt CFR, actual weight, moving sideways on average week on week.
Average rebar spot prices in China have decreased by RMB 50/mt ($7/mt) compared to August 15, standing at RMB 3,257/mt ($457/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 22, rebar futures at Shanghai Futures Exchange are standing at RMB 3,119/mt ($437/mt), decreasing by RMB 69/mt ($9.7/mt) or 2.2 percent since August 15, while down 0.35 percent compared to the previous trading day, August 21.
$1 = RMB 7.1321