During the past week, ex-China rebar offer prices have edged down slightly compared to the previous week, mainly due to weak demand and negative sentiments. However, as there is slight rise in iron ore prices and a rebound expected in coking coal and coke prices, further significant falls in rebar prices are unlikely in the near future.
Ex-China rebar offer prices have been heard at $440-460/mt FOB, for August shipment, edging down by $2.5/mt on average compared to June 20.
Due to inspections to ensure safe production, the production of coking coal and coke may be halted, which could result in rising prices and push up rebar prices from the cost side. However, heavy rains and high temperatures will continue to negatively affect the demand for rebar and weaken its prices. It is expected that rebar prices in the Chinese domestic market will edge up in the coming week.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $460/mt DAP, theoretical weight, down $2.5/mt on average compared to June 20. Offer prices of ex-China rebar stand at $455/mt CFR, on theoretical weight, down $5/mt on average week on week.
In the Hong Kong market, buyers’ counter-offer target prices stand below $450/mt CFR, actual weight, decreasing by $5/mt on average compared to June 20, while offer prices of ex-Malaysia rebar have been heard at $460/mt CFR, actual weight, declining by $2.5/mt on average week on week.
Average rebar spot prices in China have lost RMB 16/mt ($2.2/mt) compared to June 20, standing at RMB 3,117/mt ($435/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 27, rebar futures at Shanghai Futures Exchange are standing at RMB 2,995/mt ($418/mt), increasing by RMB 3/mt ($0.4/mt) or 0.1 percent since June 20, while up 0.98 percent compared to the previous trading day, June 26.
$1 = RMB 7.1627
