Ex-China rebar offer prices have moved sideways amid the prevailing cautious sentiments following the long holiday, but the outlook is from stable to negative for next week, but rather positive for the end of October, based on an expected improvement in the local market. However, only limited gains are possible in the export market, according to market sources.
Ex-China rebar offer prices have been heard at $460-480/mt FOB, remaining stable on average compared to pre-holiday period.
Rebar futures prices have indicated slight declines just after the holiday. Meanwhile, cautious sentiments have prevailed among market players, exerting a negative impact on rebar prices. Following the long holiday, there was some stock replenishment, though it was limited, weakening the support for rebar prices. However, market players think demand might improve in the near future. It is expected that rebar prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week and will likely rebound later.
Meanwhile, offer prices of ex-Malaysia rebar have been heard at $480-485/mt DAP Singapore, theoretical weight, translating to $475/mt CFR. Offer prices of ex-China rebar stand at $480/mt CFR Singapore, theoretical weight, remaining unchanged compared to late September.
In the Hong Kong market, buyers’ target prices stand at $475/mt CFR, actual weight, moving sideways on average compared to September 26, while offer prices of ex-Malaysia rebar have been heard at $480-485/mt CFR, actual weight.
Average rebar spot prices in China have decreased by RMB 10/mt ($1.4/mt) compared to September 26, standing at RMB 3,223/mt ($454/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,103/mt ($437/mt), decreasing by RMB 11/mt ($1.5/mt) or 0.35 percent since September 26, while up 0.52 percent compared to the previous trading day, October 9.
$1 = RMB 7.1048
