Prices for imported rebar have declined further in the past week and it seems that they have hit the bottom as signs of a rebound have been seen in China and in the scrap segment. During the given week, ex-China rebar offer prices have moved sideways.
Reference import prices of rebar in Singapore have hit $600/mt CFR on theoretical weight and levels even $5-10/mt lower have been discussed in negotiations for ex-ASEAN origin rebar, though there has been no information that a deal has been signed. A week before, the most competitive offers to Singapore were from Malaysia at $600-620/mt CFR.
Moreover, traders have been offering ex-ASEAN rebar to Hong Kong at $600/mt CFR Hong Kong, actual weight.
But even despite weak demand for rebar, the market is at bottom levels, most market sources believe. Some producers have already started to voice higher offers - at $620-660/mt CFR Singapore for Asian and Middle Eastern origin. Rebounding scrap has been the main reason for the changing trend in the rebar segment in Asia.
Ex-China rebar offer prices have been heard at $630-650/mt FOB for October shipment, moving sideways on average compared to late July.
“Steelmakers’ outputs of rebar have increased amid certain improvements from downstream users, while market players think that rebar prices have lack the conditions for continuous support in the near future as they expect the real improvement in demand to be seen in September,” an international trader said.
Moreover, the tensions caused by the visit of US House Speaker Nancy Pelosi to Taiwan have exerted a negative impact on market players’ sentiments.
Vietnam’s Hoa Phat has cut its rebar prices for the 12th consecutive week, with the CB 400V rebar price currently at $650-660/mt FOB.
On August 8, rebar futures contract (rb2210) offers closed at RMB 4,136/mt ($611/mt) at Shanghai Futures Exchange, up RMB 43/mt ($6.4/mt) or 1.05 percent compared to August 1.