During the given week, ex-China rebar offer prices edged up slightly, mainly amid improved sentiment and relatively high costs, together with higher freight rates. However, it seems that prices may stabilize at current levels in the near future.
Ex-China rebar offer prices have been heard at $475-485/mt FOB, rising by $5/mt on average compared to March 13.
During the given week, escalating tensions in the Middle East continued to affect shipping and logistics costs, bolstering prices in the export market. However, the UK government announced that its steel import quotas will be reduced by 60 percent starting from July 1, while steel imports exceeding the quota will be subject to a tariff of 50 percent, up from the current 25 percent, which is expected to exert a negative impact on rebar supply from Asia.
Meanwhile, the ongoing conflict in the Middle East has negatively affected market sentiment. For instance, the stock market in China has witnessed continuous declines, which may weaken support for the rebar market. Improved demand during the traditional peak season of March and April is expected to provide some support to rebar prices. It is expected that rebar prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Offer prices of ex-China rebar stood at $500-510/mt CFR Singapore for prompt shipment, theoretical weight, moving sideways compared to March 13. Meanwhile, offer prices of ex-Malaysia rebar have been heard at $500-510/mt DAP Singapore, theoretical weight.
In the Hong Kong market, buyers’ target price stood at $490/mt CFR, actual weight, rising by $2.5/mt on average compared to March 13, while offer prices of ex-Malaysia rebar have been heard at $510-515/mt CFR, actual weight.
Average rebar spot prices in China have declined by RMB 6/mt ($0.9/mt) compared to March 13, standing at RMB 3,247/mt ($470/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 20, rebar futures at the Shanghai Futures Exchange stood at RMB 3,123/mt ($453/mt), decreasing by RMB 19/mt ($2.8/mt) or 0.6 percent since March 13, and down by 0.26 percent compared to the previous trading day, March 19.
$1 = RMB 6.8898
