During the given week, ex-China rebar offer prices have remained stable and most import offers in the Asian rebar market have been also unchanged despite the uptrend seen in the local Chinese market amid higher rebar futures.
Ex-China rebar offer prices have been heard at $450-470/mt FOB, remaining stable on average compared to October 24.
During the given week, rebar futures prices have seen rises, exerting a positive impact on rebar prices in the spot market. Recent developments including Federal Reserve's interest rate decision and the President of China, Xi Jinping holding the meeting with the US president Trump at Busan, might leave a relatively stable environment for market players. Rebar futures prices might fluctuate within a limited range in the coming period. However, China’s PMI decreased by 0.8 percentage points month on month to 49.0 percent, as announced by the National Bureau of Statistics, signaling manufacturing sentiment has weakened, which might negatively affect the demand for steel. It is thought that rebar prices in the Chinese domestic market will likely move sideways in the coming week.
Meanwhile, the offer prices of ex-Malaysia rebar have been heard at $470-475/mt DAP, Singapore, theoretical weight, moving sideways and translating to around $465/mt CFR. Offer prices of ex-China rebar stood at $465-470/mt CFR Singapore, theoretical weight, down $2.5/mt compared to that recorded in the previous week.
In Hong Kong market, buyers’ target price stood at $460/mt CFR, actual weight, while offer prices of ex-Malaysia rebar have been heard at stable $470-475/mt CFR, actual weight.
Average rebar spot prices in China have increased by RMB 60/mt ($8.5/mt) compared to October 24, standing at RMB 3,230/mt ($455/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 31, rebar futures at Shanghai Futures Exchange are standing at RMB 3,106/mt ($437.5/mt), increasing by RMB 60/mt ($8.5/mt) or 2.0 percent since October 24, while down 0.48 percent compared to the previous trading day, October 30.
$1 = RMB 7.088
