During the given week, ex-China rebar offer prices moved down amid the decreasing futures, weak sentiments in the local market and very limited demand from SE Asia.
Ex-China rebar offer prices have been heard at $490-500/mt FOB, moving down by $10/mt on average compared to May 15.
During the given period, ex-China rebar offer prices have moved down amid the slackening purchasing activities from ASEAN buyers as they thought the prices have been at relatively high levels.
Meanwhile, rebar futures prices have moved on a downtrend, exerting a negative impact on rebar prices in the Chinese domestic market. At the same time, prices of steelmaking raw materials, including iron ore and coking coal, have decreased, weakening the support to rebar prices. Since the traditional offseason in summer is approaching, demand for rebar is expected to slacken further, negatively affecting market sentiments. It is thought that rebar prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Offer prices of ex-China rebar stood at $520-525/mt CFR Singapore, theoretical weight, decreasing by $5-10/mt compared to that recorded on May 15. Meanwhile, the offer prices of ex-Malaysia rebar have been heard at $530/mt CFR Singapore, theoretical weight, down $2.5/mt compared to May 15. “Malaysia is well positioned amid previous sales, they can give some additional discounts but they are not in a hurry,” a SE Asian market source said.
In Hong Kong market, buyers’ target price stood at $510/mt CFR, actual weight, decreasing by $5/mt on average compared to May 15.
Average rebar spot prices in China have lost RMB 64/mt ($9.4/mt) compared to May 15, standing at RMB 3,313/mt ($484/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 22, rebar futures at Shanghai Futures Exchange are standing at RMB 3,168/mt ($463/mt), decreasing by RMB 64/mt ($9.4/mt) or 2.0 percent since May 15, while decreasing by 0.50 percent compared to the previous trading day, May 21.
$1 = RMB 6.8373
