During the given week, ex-China rebar offer prices move on an uptrend, supported by the rise in futures and local prices amid restocking ahead of May holidays. Nevertheless, the outlook for the next week is cautious.
Ex-China rebar offer prices have been heard at $480-495/mt FOB, moving up by $7.5/mt on average compared to April 17.
During the given week, the second round of hike in coke prices has been implemented, while the third round is expected to be implemented next week, bolstering rebar prices firmly from cost side. In addition, inventories of rebar decreased, exerting a positive impact on its prices. Meanwhile, since the Labor Day holiday (May 1-5) is approaching, demand for rebar from downstream users improved amid the inventory restocking. However, Shagang Group, China’s largest private steelmaker, has cut its offer prices for 16-20 mm HRB400 rebar by RMB 100/mt ($14.6/mt) for late April (April 21-30), signaling the cautious sentiments as regards the future prospects for the rebar market. It is expected that rebar prices in the Chinese domestic market will move sideways in the coming week.
Meanwhile, offer prices of ex-China rebar stood at $515-520/mt CFR Singapore, prompt shipment, theoretical weight, increasing by $10/mt on average compared to that recorded on April 17. The offer prices of ex-Malaysia rebar have been heard at $520/mt DAP, Singapore, theoretical weight, up $5/mt on average compared to April 17.
In Hong Kong market, buyers’ target price stood at $505/mt CFR actual weight, increasing by $7.5/mt on average compared to April 17.
Average rebar spot prices in China have gained RMB 40/mt ($5.8/mt) compared to April 17, standing at RMB 3,320/mt ($483/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 24, rebar futures at Shanghai Futures Exchange are standing at RMB 3,191/mt ($464/mt), increasing by RMB 58/mt ($8.4/mt) or 1.85 percent since April 17, while increasing by 0.06 percent compared to the previous trading day, April 23.
$1 = RMB 6.8674
