During the given week, ex-China rebar offer prices have moved down slightly after sharp rises seen last week as demand has worsened further. However, expected production cuts in August and strong raw material prices will hold prices for rebar in China firm and some further rises are not excluded.
Ex-China rebar offer prices have been heard at $460-475/mt FOB, down $2.5/mt on average compared to July 25. During the given week, rebar futures prices have moved down amid the slack demand from downstream users in traditional off-season and heavy rains in many regions of China negatively affecting construction activities. Rebar prices have seen declines due to the decreasing rebar futures prices. Following previous price rises, market players have been cautious as regards the future prospects for the rebar market.
However, on August 1, Jiangsu Province-based Shagang Group has raised its offer prices for HRB400Ф16-20mm rebar by RMB 200/mt ($28/mt) to RMB 3,550/mt ($496.5/mt) for August 1-10, bolstering market sentiments. Moreover, production reduction is expected in August due to the approaching military parade on September 3, which will provide certain support to rebar prices. It is thought that rebar prices in the Chinese domestic market will indicate gradual increases in the coming week.
In Singapore market, the offer prices of ex-Malaysia rebar have been heard at $470-480/mt, DAP, theoretical weight, increasing by $2.5/mt on average compared to July 25. Offer prices of ex-China rebar stood at $475/mt CFR, theoretical weight.
In Hong Kong market, buyers’ target price stood at $465/mt CFR, actual weight, moving down by $5/mt on average compared to July 25, while offer prices of ex-Malaysia rebar have been heard at $475/mt CFR, actual weight, remaining stable on average week on week.
Average rebar spot prices in China have lost RMB 76/mt ($10.6/mt) compared to July 25, standing at RMB 3,327/mt ($465/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 1, rebar futures at Shanghai Futures Exchange are standing at RMB 3,203/mt ($470/mt), decreasing by RMB 153/mt ($29/mt) or 4.6 percent since July 25, while down 1.23 percent compared to the previous trading day, July 31.
$1 = RMB 7.1496