Prices for imported rebar have continued to move up. Apart from the previous support from higher raw materials prices, the uptrend is now also supported by better interest in purchases from Singapore and Hong Kong. In the given week, ex-China rebar offer prices have remained stable as most Chinese sellers have already left the market for the Lunar New Year holiday.
A deal for 20,000 mt of ex-Malaysia rebar has been booked to Singapore at $645/mt delivered, theoretical weight, translating to $635/mt CFR, which means that the tradable level has added $25/mt in two weeks and is up $10/mt from last week’s level of $625/mt CFR.
In addition, ex-Malaysia rebar has been traded at $645/mt CFR Hong Kong on actual weight basis, this is in line with the offers voiced last week, which were not accepted first, but is around $10/mt below the deal price level in Singapore. Meanwhile, ex-Oman rebar is heard to have been sold at a similar price to the Hong Kong deal at $645/mt CFR, but this could not be finally confirmed by the time of publication. “The market has moved up, and some companies have purchased before the Lunar New Year, but let’s see how China returns,” a trader said.
Ex-China rebar prices have been at $600-620/mt FOB, for March shipment, remaining stable on average compared to January 13, but with a minimum number of offers reported this week.
“Transaction activities in the local rebar market have been quiet, while market players in Southeast Asia hold an optimistic view of the future prospects for the rebar market in China following the Chinese New Year holiday [January 21-27],” an international trader said.
Average rebar spot prices in China have gained RMB 3/mt ($0.44/mt) compared to January 13, standing at RMB 4,220/mt ($623.3/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 20, rebar futures at the Shanghai Future Exchange are standing at RMB 4,179/mt ($617/mt), edging up by RMB 6/mt ($0.9/mt) or 0.14 percent since January 13.
$1 = RMB 6.7702
