During the given week, ex-China rebar offer prices have moved sideways as demand both locally and in the Asian market has been rather weak and even some increase in futures prices and better expectations for March have failed to support prices, at least so far.
Ex-China rebar offer prices have been heard at $460-470/mt FOB, remaining stable on average compared to February 27.
During the given period, the relatively high inventories of rebar have exerted a negative impact on prices. Meanwhile, the war in the Middle East has negatively affected transportation and market players’ expectations for exports. Steel producers in northern China have been required to halt production for the Two Sessions in early March, while they may resume production in the near future, which will increase the supply of rebar to the market and weaken the support for prices. It is expected that rebar prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
Meanwhile, offer prices of ex-China rebar stood at $485-490/mt CFR Singapore, for prompt shipment, theoretical weight, though some sellers may target up to $495/mt CFR due to the increase in freight rates. In the Hong Kong market, buyers’ target price is stable at $475-480/mt CFR, actual weight.
Average rebar spot prices in China have lost RMB 7/mt ($1.0/mt) compared to February 27, standing at RMB 3,210/mt ($465/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 6, rebar futures at Shanghai Futures Exchange are standing at RMB 3,088/mt ($447.5/mt), increasing by RMB 21/mt ($3.0/mt) or 0.7 percent since February 27, while increasing by 0.26 percent compared to the previous trading day, March 5.
$1 = RMB 6.9025
