During the given week, ex-China rebar offer prices have moved up amid rising rebar futures prices, though sentiment has become more negative on Friday. Asian rebar importers have been cautious as regards high-priced purchases, with only limited volumes heard to have changed hands.
Still increasing scrap prices have supported ex-Turkey rebar prices. Offers have been heard at $680/mt CFR to Singapore on theoretical weight basis, and at $700/mt CFR Hong Kong, actual weight. As SteelOrbis reported earlier this week, around 2,000 mt of 50 mm rebar was traded at $695/mt CFR Hong Kong on actual weight basis this week as a top-up cargo to the previous order due to be shipped in March. As a result, most market sources believe that the recent tradable level for import rebar is at a much lower level.
A cargo for 50,000 mt of rebar from Oman was sold at around $650-655/mt CFR Singapore on theoretical weight basis in the second half of February ($610/mt FOB on actual weight basis), which is in line with the deal price level last week. An Indian mill is also heard to have sold a cargo at $610-620/mt FOB on actual weight basis last week to Southeast Asia, but this has not been confirmed by the time of publication.
Ex-China rebar offer prices have been heard at $680-700/mt FOB for May shipment, moving up by $30/mt on average compared to February 26. “The rising trend in rebar futures prices pushed up local rebar prices, and so steelmakers raised their export offers, hitting the highest historical level. The two sessions [the National People's Congress and the Chinese Political Consultative Conference (NPC & CPPCC)] exerted a negative impact on the rebar market from the production side, which may bolster prices in the near future,” an international trader said.
Average rebar spot prices in China have gained only RMB 10/mt ($1.5/mt) week on week to RMB 4,700/mt ($724/mt) ex-warehouse, according to SteelOrbis’ information, as following strong rises earlier this week the market has showed a fall by RMB 70/mt ($11/mt) on Friday.
As of March 5, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,696/mt ($724/mt), increasing by RMB 17/mt ($2.9/mt) or 0.36 percent since February 26.
$1 = RMB 6.4904