During the given week, ex-China rebar offer prices have remained stable, but the mood in Southeast Asia has improved a little, which has been reflected in a slight increase in tradable prices and rumors about some sales done by Asian rebar sellers to distant markets.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, remaining stable on average compared to December 12.
During the given week, Liaoning Province-based Chinese steelmakers Anshan Iron and Steel, Benxi Iron and Steel (Bengang) and Ansteel Group Lingyuan Iron and Steel Co., Ltd. (Lingyuan Steel) have decided to keep their local base price stable for rebar, for delivery in January, supporting market sentiments.
The third round of decreases in coke prices is anticipated to be implemented in the near future, which may exert a negative impact on rebar prices from the cost side. China’s State Administration for Market Regulation has announced that it will implement a comprehensive crackdown on involution-style competition, while promoting the formation of a good market order. However, rebar futures prices did not respond positively to this information, remaining stable on December 19, reflecting the prevailing cautious sentiments among market players. 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-China rebar have stood at $470-475/mt CFR Singapore, on theoretical weight, up by $5/mt compared to the previous week. Meanwhile, offer prices of ex-Malaysia rebar have been heard at $490/mt DAP Singapore, on theoretical weight.
In the Hong Kong market, the tradable level voiced by buyers was $460/mt CFR, on actual weight, up $5-10/mt on average compared to December 12, while offer prices of ex-China rebar have been starting from $470/mt CFR, while Malaysia rebar has been heard at $490/mt CFR, on actual weight.
There has been some talk about two or three large cargoes of Chinese rebar sold to the distant markets like the GCC, but this information could not be verified by the time of publication.
Average rebar spot prices in China have gained RMB 13/mt ($1.8/mt) compared to December 12, standing at RMB 3,290/mt ($466/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 19, rebar futures at Shanghai Futures Exchange are standing at RMB 3,119/mt ($442/mt), increasing by RMB 59/mt ($8.4/mt) or 1.9 percent since December 12, while remaining stable compared to the previous trading day, December 18.
$1 = RMB 7.055