During the given week, import rebar prices in Southeast Asia have been rising rapidly. While the latest deals to Asia were for ex-Middle East rebar, market sources are seeing increasing competitiveness in the regional rebar market. Ex-China rebar offer prices have moved up as they were at relatively low levels earlier, but, even after the rise, they are more attractive in comparison to most new ex-Middle East offers.
Ex-Qatar rebar deal for 50,000 mt was done at $815/mt CFR Singapore on theoretical weight basis, almost two weeks ago, and then last week a deal for a similar tonnage was concluded at $840/mt CFR Singapore. But by the end of the week, there were no offers below $870-900/mt CFR (and most of them were for ex-Vietnam and ex-China rebar). Ex-Vietnam rebar offers were at $870/mt CFR last Thursday at the lowest.
At the same time, one Middle Eastern mill has been asking for around $940-950/mt CFR on theoretical weight basis in Singapore, while offers from Turkey may be as high as $980-990/mt CFR Singapore.
Ex-China rebar offer prices have been heard at $840-860/mt FOB, for May shipment on actual weight basis, moving up by $55/mt on average compared to March 4. “The decreasing inventory level of rebar bolstered prices, and scrap prices have moved up sharply [in the international market], also exerting a positive impact on the rebar market, though demand for rebar has not recovered to the expected levels amid the worsening of the Covid-19 pandemic in China,” an international trader said.
On March 14, rebar futures contract (rb2205) offers closed at RMB 4,695/mt ($739.4/mt) at Shanghai Futures Exchange, down RMB 399/mt ($62.8/mt) or by 7.8 percent compared to March 7.