During the given week, ex-China rebar offer prices have edged down amid the declining trend in local rebar prices, sluggish demand and strict control measures ahead of the centenary of the founding of the Chine Party of China (July 1st). In Southeast Asia, bids have remained low and only Indian rebar price has been considered reasonable by most sources, though overall demand has remained slow.
Ex-China rebar offer prices have been heard at $850-890/mt FOB, for August shipment, moving down by $10/mt on average compared to June 18. “China’s stricter control measures on commodity prices exerted a negative impact on local rebar prices, also weakening the support for ex-China rebar offer prices, while the measures may continue ahead of the centenary of the founding of the Communist Party of China, and so ex-China rebar prices may fluctuate within a limited range in the coming week,” an international trader said.
Offer prices of ex-China British standard rebar have been heard at $890/mt FOB, while offers for Chinese standard rebar have been heard at $850/mt FOB, down $10/mt week on week.
In Southeast Asia, negotiations for ex-India rebar have been heard at $740/mt CFR to Singapore on theoretical weight basis, though no deal has been heard. Most other offers have been uncompetitive for customers, even taking into account some decline week on week. For instance, the workable price for ex-Turkey rebar will hardly be below $765-770/mt CFR Singapore, sources have said.
Average rebar spot prices in China have lost RMB 173/mt ($27/mt) week on week to RMB 4,867/mt ($752/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 25, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,066/mt ($783/mt), increasing by RMB 5/mt ($0.77/mt) or 0.1 percent since June 18.
$1 = RMB 6.4744