During the given week, ex-China rebar offer prices have edged down compared to the previous week due to declines in the local and futures markets. However, the Malaysian producer has kept its offers stable.
Ex-China rebar offer prices have been heard at $460-465/mt FOB, for October delivery, decreasing by $7.5/mt on average compared to August 30.
During the given week, rebar prices in the Chinese domestic market have moved down amid declining rebar futures prices. Demand for rebar has improved slightly, consuming inventories gradually, while the release of demand has remained insufficient. At the same time, production of rebar has increased, exerting a negative impact on the market. Raw material prices have moved down significantly, weakening the support for rebar prices from the cost side. 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-Malaysia rebar have been heard at $485/mt DAP Singapore, on theoretical weight,, moving sideways on average week on week, translating to $475-480/mt on CFR basis. Ex-China rebar can be found at $470-475/mt CFR.
Offer prices of ex-China BS500B 12-40 mm rebar have been heard at $480-485/mt CFR Hong Kong, actual weight, slightly below $485/mt CFR last week. Market players in Hong Kong think the sluggish demand from the construction industry may continue and so they mostly holds cautious sentiments as regards the future prospects for the rebar market.
Average rebar spot prices in China have lost RMB 104/mt ($14.6/mt) compared to August 30, standing at RMB 3,193/mt ($450/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 6, rebar futures at Shanghai Futures Exchange are standing at RMB 3,051/mt ($430/mt), decreasing by RMB 171/mt ($24.1/mt) or 5.3 percent since August 30, while down 1.83 percent compared to the previous trading day, September 5.
$1 = RMB 7.0925
