During the past week, ex-China rebar prices have edged up slightly and this increase has been accepted by buyers as demand in both the local market in China and in Southeast Asia has posted some improvement.
Ex-China rebar offer prices have been heard at $480-485/mt FOB, edging up by $2.5/mt on average compared to March 20.
During the given week, shipping and logistics costs have risen amid the ongoing war in the Middle East, exerting a negative impact on rebar exports, though inquiries have increased. Chinese steelmakers will raise purchase prices for coke by RMB 50/mt ($7/mt) as of April 1, which will bolster rebar prices to a certain degree. At the same time, the demand for rebar from downstream users in the Chinese domestic market has improved, which will positively affect prices. It is thought that rebar prices in the Chinese domestic market will move sideways or post further gradual increases in the coming week.
Meanwhile, ex-China rebar offers to Singapore have increased to $510/mt CFR Singapore, for prompt shipment, theoretical weight, up $5/mt on average compared to March 20. This happened after some small-volume deals done at $505/mt CFR Singapore from China.
In the Hong Kong market, some buyers’ target prices have stood at $495/mt CFR, actual weight, but some customers have increased their bids to $500/mt CFR, trying to catch volumes. An ex-China rebar sale was heard at $502/mt CFR or so, while offers from Malaysia have been as high as $515-520/mt FOB.
Average rebar spot prices in China have gained RMB 3/mt ($0.4/mt) compared to March 20, standing at RMB 3,250/mt ($471/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 27, rebar futures at Shanghai Futures Exchange are standing at RMB 3,124/mt ($453/mt), increasing by RMB 1/mt ($0.14/mt) since March 20, while decreasing by 0.22 percent compared to the previous trading day, March 26.
$1 = RMB 6.9141
