During the week ending January 8, ex-China rebar offer prices have moved sideways amid the New Year holiday and the appreciation of Chinese currency. They have remained the most competitive for Southeast Asian customers.
Ex-China rebar offer prices have been heard at $620-640/mt FOB, for late March shipment, moving sideways on average compared to December 25. “Extremely cold weather in China and more Covid-19 cases being found in Hebei Province have exerted a negative impact on the local rebar market, while buyers from overseas markets have been more willing to conclude purchases of ex-China rebar following the New Year holiday, bolstering prices,” an international trader said.
According to reports from market sources, a contract for ex-China rebar has been signed at $650-655/mt CFR actual weight basis. This price level is too low for other exporters rather than China, as Turkish mills are offering not below $640/mt FOB, which is $670/mt CFR Hong Kong minimum. Also, there have been reports of a sale of Chinese rebar at $615/mt FOB, but for cash payment.
The tradable value for imported rebar in Singapore has remained at the end-of-December level of $630/mt CFR on theoretical weight basis.
In the local market in China, ferrous metal futures prices have risen following the New Year holiday, positively affecting rebar prices. However, the cold weather has negatively affected construction activities in China and weakened the support for local rebar prices, though the rises in iron ore prices bolstered the rebar market.
Average rebar spot prices in China have gained RMB 46/mt ($7.1/mt) week on week to RMB 4,463/mt ($690/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 8, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,487/mt ($693.5/mt), increasing by RMB 99/mt ($23/mt) or 2.3 percent since December 31.
$1 = RMB 6.4708