During the given week, import offers for rebar have increased sharply in Asia, following gains in the scrap segment and the huge uncertainty regarding future price levels due to Russia's war against Ukraine.
Ex-Qatar rebar offer prices have been heard at $810/mt CFR Singapore, theoretical weight, this week, mainly from traders, but much higher prices are expected, especially for June shipment.
Ex-Turkey rebar offers have been heard at $820/mt CFR Singapore, theoretical weight, early this week, then they have risen to $850/mt CFR. By the end of the week, Turkish mills have voiced rebar prices at $890-900/mt FOB, which already translates to above $900/mt CFR Singapore. No new deals have been reported so far, as buyers are evaluating the market, given that last week the tradable level in Singapore was at $775/mt CFR.
Moreover, there is news of some cancellations of deals already. At least one contract for ex-Middle East rebar to Hong Kong was canceled this week, according to sources, due to force majeure, a source said.
Offer prices for rebar were heard at $820-830/mt CFR Hong Kong, actual weight, early this week, while they have disappeared by Friday.
“The Ukraine-Russia crisis has pushed up scrap prices sharply in the international market, which affected rebar offer prices, while local Chinese buyers have been unwilling to accept the rapid rises, especially amid the spread of the Covid-19 pandemic in Asia,” an international trader said.
Ex-China rebar offer prices have been heard at $770-820/mt FOB, for May shipment, moving up by $5/mt on average compared to February 25.
Average rebar spot prices in China have gained by RMB 134/mt ($21.2/mt) week on week, standing at RMB 4,947/mt ($781.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 4, rebar futures at the Shanghai Future Exchange are standing at RMB 4,901/mt ($774.2/mt), increasing by RMB 284/mt ($45.0/mt) or 6.2 percent since February 25.
$1 = RMB 6.3288