During the given week, ex-China rebar offer prices have moved sideways, but some signs of an improvement have started to emerge, with lower production at some mills in China and somewhat higher offers announced by the major source of rebar in the Southeast Asian market lately, namely, Malaysia.
Ex-China rebar offer prices from small mills have been heard at $490-520/mt FOB, for December shipment, moving sideways on average compared to October 13. During the given week, inventory in the Chinese market has increased, exerting a negative impact on rebar prices, while cautious sentiments have prevailed among market players. However, “steelmakers have gradually reduced outputs, aiming to ease the oversupply situation in the rebar market and bolster prices,” a trader said.
Offer prices of ex-Malaysia rebar have been heard at $540/mt DAP Singapore, theoretical weight, translating to $530-535/mt CFR, up by $5/mt since last week. Prices of ex-Vietnam rebar have been heard at $540-550/mt CFR, though levels at least $10/mt lower are achievable, according to sources. Offers of ex-China rebar have been heard at $540/mt CFR Singapore.
At the same time, offer prices of ex-Malaysia rebar have been heard at $540/mt CFR Hong Kong, actual weight.
Average rebar spot prices in China have moved up by RMB 13/mt ($1.8/mt) compared to October 13, standing at RMB 3,753/mt ($523/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 20, rebar futures at the Shanghai Future Exchange are standing at RMB 3,610/mt ($503/mt), decreasing by RMB 10/mt ($1.4mt) or 0.28 percent since October 13.
$1 = RMB 7.1793