During the given week, ex-China rebar offer prices have moved sideways officially but for some customers sellers have provided discounts, understanding that in the current weak demand conditions this is the only option.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, moving sideways on average compared to December 5, but with discounts of $5/mt discussed.
During the given week, rebar futures prices have moved down, exerting a negative impact on market sentiments. Jiangsu Province-based Shagang Group has kept its offer prices for 16-20 mm HRB400 rebar stable at RMB 3,450/mt ($487.6/mt) for mid-December, bolstering market sentiments to a certain degree.
Meanwhile, a second round of price declines has been implemented for coke prices, weakening the support for rebar prices from the cost side. Since the Christmas and New Year holiday are approaching, demand for rebar in the global market may remain sluggish, which will negatively affect prices. It is thought that rebar prices in the Chinese domestic market may edge down in the coming week.
In Southeast Asia’s import market, offer prices of ex-China rebar stood at $465-470/mt CFR Singapore, theoretical weight, down $5/mt compared to that recorded in the previous week. At the same time, Malaysian rebar is quoted at $470-475/mt CFR.
In the Hong Kong market, buyers are still seeking low levels of $450-455/mt CFR, actual weight, at the highest, with the lowest offers from China seen $470/mt CFR or just slightly below.
Average rebar spot prices in China have lost RMB 43/mt ($6.1/mt) compared to December 5, standing at RMB 3,277/mt ($463.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 12, rebar futures at Shanghai Futures Exchange are standing at RMB 3,060/mt ($433/mt), decreasing by RMB 97/mt ($13.7/mt) or 3.1 percent since December 5, while down 0.87 percent compared to the previous trading day, December 11.
$1 = RMB 7.0749