Ex-China rebar offer prices have remained stable this week since, even despite weak demand and rising inventories, there were production cuts ahead of the military parade in Beijing and the recent rebound in futures prices signals hope for an improvement next week.
Ex-China rebar offer prices have been heard at $460-480/mt FOB, remaining stable on average compared to August 29.
During the given week, rebar futures prices have increased, especially today, September 5, exerting a positive impact on market sentiments. Due to the military parade, some rebar producers had halted their production activities, which bolstered rebar prices to a certain degree. Demand for rebar is likely to improve in the near future amid the traditional peak-season. Meanwhile, rumors in the market said that China is encouraging state-owned enterprises to acquire commercial housing from developers facing difficulties, which may positively affect the real estate industry and boost the demand for rebar. It is expected that rebar prices in the Chinese domestic market will rebound in the coming week.
Meanwhile, the offer prices of ex-Malaysia rebar have been heard at $490/mt DAP Singapore, theoretical weight, translating to $480-485/mt on CFR basis, similar to last week. Offer prices of ex-China rebar stand at $480-490/mt CFR Singapore, theoretical weight, down $5/mt on the lower end from the previous week.
In the Hong Kong market, buyers’ target price stands below $480/mt CFR, actual weight, moving sideways on average compared to August 29, while offer prices of ex-Malaysia rebar have been heard at $485/mt CFR, actual weight.
Average rebar spot prices in China have decreased by RMB 23/mt ($3.2/mt) compared to August 29, standing at RMB 3,217/mt ($453/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,143/mt ($435/mt), increasing by RMB 53/mt ($4.1/mt) or 1.7 percent since August 29, while up 1.06 percent compared to the previous trading day, September 4.
$1 = RMB 7.1064