Ex-China rebar offer prices have continued their uptrend amid increasing rebar futures prices and rising local prices, as well as higher raw material prices.
Ex-China rebar offer prices have been heard at $490-500/mt FOB, moving up by $5-10/mt on average compared to April 24.
During the given period, ex-China rebar prices have moved up amid tight supply. Meanwhile, increasing rebar futures prices have bolstered market sentiments to a certain degree. Following the Labor Day holiday (May 1-5), financial markets in China have gained upward momentum, exerting a positive impact on the rebar market. At the same time, prices of raw materials, including coke and iron ore, have moved up, positively affecting rebar prices from the cost side. However, the weak performance of the real estate industry has continued to weaken the support for rebar demand. Moreover, the traditional peak season is drawing to a close, which will exert a negative impact on the rebar market. It is thought that rebar prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Meanwhile, offer prices of ex-Malaysia rebar have been heard at $525-530/mt DAP Singapore, theoretical weight, up $5-10/mt on average compared to April 24. Offer prices of ex-China rebar stand at $525-530/mt CFR Singapore, for prompt shipment, theoretical weight, adding $10/mt on average compared to April 24.
In the Hong Kong market, buyers’ target price stands at $515/mt CFR, actual weight, increasing by $10/mt on average compared to April 24.
Average rebar spot prices in China have gained RMB 73/mt ($10.7/mt) compared to April 24, standing at RMB 3,393/mt ($495/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 8, rebar futures at Shanghai Futures Exchange are standing at RMB 3,263/mt ($476/mt), increasing by RMB 72/mt ($8.4/mt) or 2.3 percent since April 24, while decreasing by 0.06 percent compared to the previous trading day, May 7.
$1 = RMB 6.8674
