During the given week, ex-China rebar offer prices have remained stable as prices in the local market have been relatively stable and futures have posted some improvements, mainly based on expectations. However, pressure on imported rebar prices in SE Asia has continued due to slow demand and uncertainty in the near future trend.
Ex-China rebar offer prices from small mills and traders have been heard at $520-530/mt FOB, for September shipment, remaining stable on average compared to July 7.
“During the given week, rebar prices in the Chinese domestic market have fluctuated within a limited range amid the decreasing production due to the production controlling measures in some regions of China, while raw material prices increased in the given period, which may shrink steelmakers’ profitability and exert a negative impact on rebar producers’ output in the near future,” an international trader said.
Offer prices of ex-Malaysia and ex-Middle East rebar have been heard at $560/mt CFR Hong Kong, actual weight, moving sideways compared to the previous week, when a deal was signed at $555-560/mt CFR. In China and Vietnam, orders from the export market have been insufficient amid the hot weather.
In Singapore, the import rebar reference price has moved slightly down to $540-560/mt CFR versus $550-555/mt CFR last week, while buyers’ price ideas have been heard at $530-540/mt CFR only.
Average rebar spot prices in China have been stable compared to July 7, standing at RMB 3,770/mt ($529/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 14, rebar futures at the Shanghai Future Exchange are standing at RMB 3,774/mt ($529/mt), moving up by RMB 103/mt ($6.9/mt) or 2.8 percent since July 7.
$1 = RMB 7.1318