During the given week, ex-China rebar offer prices have seen slight rises amid increasing coke prices and the production cuts expected in Tangshan, the major steelmaking hub in Hebei Province. But official FOB-based prices from China have gained slightly, while much bigger rises have been seen for ex-Malaysia rebar.
In Singapore, offer prices of ex-Malaysia rebar have been heard at $500/mt DAP, theoretical weight, translating to $490-495/mt CFR, moving up by $20/mt over the week. But prices differ depending on the volume and for very small lots prices can be higher. In particular, the offer prices of ex-Malaysia rebar have been heard at $510-520/mt CFR for order volumes below 1,000 mt, at $495/mt CFR for order volumes between 1,000 and 5,000 mt, and at $490/mt CFR for order volumes above 5,000 mt, for delivery in November, theoretical weight. At the same time, offer prices of ex-China rebar stand at $495-500/mt CFR, theoretical weight.
In the Hong Kong market, the tradable level has been assessed at $490/mt CFR, actual weight, moving up by $20/mt on average compared to August 8, while offer prices of ex-Malaysia rebar have been heard at $500/mt CFR, actual weight.
Ex-China rebar offer prices have been heard at $470-480/mt FOB, up $5/mt on average compared to August 8.
During the given week, rebar futures prices moved up first while edging down later. Coke prices have moved up further, providing support for rebar prices from the cost side. In the January-July period this year, total real estate investments in China amounted to RMB 5.358 trillion ($0.75 trillion), down 12 percent year on year, 0.8 percentage points faster than the decline recorded in the first six months this year, as announced by China's National Bureau of Statistics (NBS). Domestic demand has remained sluggish, exerting a negative impact on rebar prices. However, the anticipated production cuts amid the approach of the military parade on September 3 have bolstered the rebar market. One trader commented, “Depending on production halts and domestic consumption of rebar alone, oversupply is unlikely to ease. If steel mills do not lower their export offer prices for rebar, the export volume will shrink in the second half of the current year.” It is expected that rebar prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average rebar spot prices in China have decreased by RMB 20/mt ($2.8/mt) compared to August 8, standing at RMB 3,307/mt ($463/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,188/mt ($447/mt), decreasing by RMB 25/mt ($3.5/mt) or 0.8 percent since August 8, while down 0.41 percent compared to the previous trading day, August 14.
$1 = RMB 7.1371