During the past week, ex-China rebar offer prices have continued their downward trend due to the fall in futures prices and in local market prices. As a result, Chinese suppliers have been offering at similar levels to Malaysian suppliers, who had been the most competitive for weeks.
Ex-China rebar offer prices have been heard at $480-485/mt FOB, October shipment, decreasing by $7.5/mt on average compared to August 2. During the given week, the shift of new production standards for rebar continued to exert a negative impact on market sentiments, while at the same time hot weather weakened the demand for rebar. Moreover, rebar futures prices moved on a downtrend, negatively affecting rebar market. Liaoning province-based Chinese major steelmaker Angang Steel Company announced a decline of RMB 200/mt ($28/mt) in rebar prices for September, signaling ongoing bearish sentiments. It is thought that rebar prices in the Chinese domestic market will likely edge down in the coming week, market sources believe.
Offer prices of ex-Malaysia rebar have been heard at $500/mt DAP Singapore, theoretical weight, moving sideways on average week on week. This level translates to $490-495/mt on CFR basis. However, this week Chinese traders have also been ready to provide this price to buyers in Singapore, who have taken a wait-and-see position.
Offer prices of ex-China rebar have been heard at $500/mt CFR Hong Kong, actual weight, against the offer prices of $505/mt CFR in the previous week, while buyers in the market have been cautious in concluding purchases.
Average rebar spot prices in China have lost RMB 36/mt ($5.0/mt) compared to August 2, standing at RMB 3,287/mt ($460/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 9, rebar futures at Shanghai Futures Exchange are standing at RMB 3,277/mt ($474/mt), decreasing by RMB 102/mt ($14.2/mt) or 3.0 percent since August 2, while down 0.27 percent compared to the previous trading day, August 8.
$1 = RMB 7.1449
