During the past week, ex-China rebar offer prices have moved up further amid support from the absence of Iranian supplies in the export markets. However, given a weakening of sentiments and some losses in futures and local prices in China, the uptrend in the export market may be over for now.
Ex-China rebar offer prices have been heard at $500-510/mt FOB, moving up by $10/mt on average compared to May 8.
During the given period, ex-China rebar prices were supported by strong futures early this week, even though in the local spot market the uptrend has stopped. US President Trump embarked on a state visit to China on May 13, while China’s financial markets did not perform well on May 14, despite expectations, exerting a negative impact on market sentiments in the steel industry. In addition, the US Senate has confirmed Kevin Warsh as chair of the Federal Reserve for the coming four years (less transparency and great control by Trump expected by some experts), which has dampened sentiments and precious metals futures severely on May 15, also negatively affecting ferrous metal futures prices.
Currently, downstream users have been cautious in concluding purchases of high-priced rebar, resulting in weak transaction activities. At the same time, a wait-and-see stance has prevailed among market players. It is expected that rebar prices in the Chinese domestic market will soften in the coming week.
Offer prices of ex-China rebar stand at $530/mt CFR Singapore, for prompt shipment, theoretical weight, increasing by $2.5/mt on average compared to May 8. Meanwhile, offer prices of ex-Malaysia rebar have been heard at $535-540/mt DAP Singapore, theoretical weight, up $10/mt on average compared to May 8.
In the Hong Kong market, the tradable levels for import rebar stand at $515-525/mt CFR, actual weight, while offer prices are at $530-545/mt CFR.
Average rebar spot prices in China have lost RMB 16/mt ($2.3/mt) compared to May 8, standing at RMB 3,377/mt ($494/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,232/mt ($472.5/mt), decreasing by RMB 31/mt ($4.5/mt) or 0.95 percent since May 8, while down 0.43 percent compared to the previous trading day, May 14.
$1 = RMB 6.8415
