During the given week, ex-China rebar offer prices have moved down due to weak local demand and the negative outlook. Consequently, the competition in Southeast Asia’s import market among Chinese and ASEAN sellers has increased.
Ex-China rebar offer prices have been heard at $455-460/mt FOB, for February shipment, decreasing by $17.5/mt on average compared to January 3. During the given week, rebar prices in the Chinese domestic market have decreased amid declining rebar futures prices. Bearish sentiments have prevailed among market players, with traders cutting their sales prices to bring in cash and ease pressure. Inventory of rebar has increased, exerting a negative impact on prices. It is expected that rebar prices in the Chinese domestic market will edge down further in the coming week.
In the Singapore market, offer prices of ex-Malaysia rebar have been relatively stable at $485-490/mt DAP, theoretical weight, translating to $480/mt on CFR basis. At the same time, offer prices of ex-China rebar have been in line or even more competitive, which have been heard at $475-480/mt CFR, theoretical weight.
In the Hong Kong market, buyers’ price ideas stand at $480/mt CFR, actual weight, versus $490-495/mt CFR a week ago.
Average rebar spot prices in China have lost RMB 67/mt ($9.3/mt) compared to January 3, standing at RMB 3,340/mt ($465/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,202/mt ($445/mt), decreasing by RMB 70/mt ($9.7/mt) or 2.1 percent since January 3, while up 0.03 percent compared to the previous trading day, January 9.
$1 = RMB 7.1891