During the given week, prices for imported rebar in Asia have fallen further as a number of sellers have been seeking to conclude sales, while buyers have remained cautious. The negative trend in the scrap market has added to the weak sentiment. Ex-China rebar offer prices have moved sideways amid the slight spot price rises in the Chinese domestic market and increasing rebar futures prices, and so exporters are still not competitive in Southeast Asia.
Indian suppliers, who were offering $740/mt CFR Singapore last week, have been asking for $730-735/mt CFR this week and are ready to negotiate, sources have said. Prices for ex-Turkey rebar have also fallen and, though some official offers are still at the higher level of $730/mt CFR and slightly above, it is possible to get prices as low as $720-725/mt CFR Singapore theoretical weight, which is closer to buyers’ price ideas.
Meanwhile, offer prices of ex-Vietnam rebar in Hong Kong have been heard at $725-730/mt CFR Hong Kong, actual weight, which are among the lowest levels for now, as other mills have been offering at $735-745mt CFR Hong Kong.
Ex-China rebar offer prices have been heard at $850-880/mt FOB, for October shipment, moving sideways on average compared to August 20. “Rebar futures prices and iron ore futures prices have rebounding during the given week, exerting a positive impact on the rebar market, while the Covid-19 pandemic in the overseas markets has negatively affected the demand from downstream users in Singapore and Hong Kong,” an international trader said.
Average rebar spot prices in China have gained RMB 10/mt ($1.5/mt) week on week to RMB 5,233/mt ($807/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 27, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,222/mt ($805/mt), increasing by RMB 122/mt ($19/mt) or 2.4 percent since August 20.
$1 = RMB 6.4863