During the given week, prices for imported rebar in the Asian region have fallen again, which has already been confirmed in deals. Moreover, further drops are expected given the sharp declines in the scrap segment.
A deal for 50,000 mt of ex-UAE rebar is reported to have been done at $710/mt CFR actual weight last weekend for the Asian market. Some sources said that this lot was sold to “a Chinese paper trader” probably to cover its position. Last week, offers for rebar on actual weight basis to Hong Kong were coming at $730-735/mt CFR, but this week, not only have ex-Gulf rebar prices dropped, but ASEAN suppliers, from Malaysia, Indonesia and Vietnam, have cut offers to $700-720/mt CFR Hong Kong on actual weight. Market sources said that sharp declines in scrap and billet prices have been putting pressure on the rebar market in Asia.
Also, there was a rumor in the market about a booking for ex-Turkey rebar at $650/mt FOB for 50,000 mt to Hong Kong, translating to around $710/mt CFR, although it has been denied by the supposed seller.
In Singapore, rebar offers on theoretical weight basis were at $710/mt CFR in the middle of the week, down by $10-20/mt from the tradable level last week. But with the sharp fall in scrap prices, at the moment customers in Singapore could already get $700/mt CFR.
Ex-China rebar offer prices from large mills have been heard at $730-760/mt FOB, June shipment, moving down by $30/mt on average compared to June 10.
“Due to the rainy weather in southern China, demand for rebar from downstream users has been slack, while rebar futures prices have seen a continuous downtrend, which also exerted a negative impact on rebar prices in China,” an international trader said.
Average rebar spot prices in China have lost RMB 260/mt ($38.8/mt) compared to June 10, standing at RMB 4,543/mt ($678/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 17, rebar futures at the Shanghai Future Exchange are standing at RMB 4,354/mt ($650/mt), decreasing by RMB 439/mt ($65.5/mt) or 9.2 percent since June 10.
$1 = RMB 6.6923