Prices for imported rebar in Southeast Asia have continued to lose ground this week amid lower offers from traders for ex-ASEAN origin materials. At the same time, the bearish Chinese market and lower scrap prices are adding to the situation, SteelOrbis has learned.
Offer prices for rebar in Singapore have come to $610-620/mt CFR theoretical weight, versus $640/mt CFR last week. Moreover, by the end of the week buyers have already been in negotiations at $600/mt CFR. Most competitive offers are from traders for ex-ASEAN origin rebar, from Malaysia or Vietnam. Even though mills may offer at higher levels, the bearish outlook and hedging of risks at Shanghai Futures Exchange have made traders confident that they will get this or even lower price levels from mills in the near future.
Also, the reference deal price in Hong Kong has been at $615/mt CFR actual weight, while demand has been very quiet.
Ex-China rebar offer prices from producers have been heard at $640-660/mt FOB, for September shipment, moving down by $10/mt on average compared to July 15.
Average rebar spot prices in China have gained RMB 7/mt ($1.04/mt) compared to July 15 to RMB 3,950/mt ($585/mt) ex-warehouse, according to SteelOrbis’ information.
“The declining supplies and inventory levels of rebar have bolstered the market, while the rebounding trend of rebar futures prices have exerted a positive impact on rebar prices. Steelmakers have implemented maintenance and reduced outputs amid losses incurred in the previous period, though demand may not see significant improvement in the near future,” an international trader said.
As of July 22, rebar futures at the Shanghai Future Exchange are standing at RMB 3,863/mt ($572/mt), rising by RMB 274/mt ($41/mt) or 7.6 percent since July 15.
$1 = RMB 6.7522