During the past week, ex-China rebar offer prices have continued their downtrend, but at a faster pace due to the worsening of the situation in the local market. As a result, the import rebar market in Asia has been impacted, with strong competition seen between Malaysian and Chinese suppliers.
Ex-China rebar offer prices have been heard at $470-490/mt FOB, for January shipment, moving down by $20/mt on average compared to November 8. During the given week, rebar futures prices have moved on a downtrend, exerting a negative impact on rebar prices in the spot market. Cautious sentiments have prevailed among market players, weakening the support for rebar prices. Demand for rebar may slacken in the near future as the weather will get colder and colder, which may drag prices down further.
In Singapore, import offer prices of ex-Malaysia rebar have been heard at $500-510/mt CFR, theoretical weight, moving down from $520/mt CFR earlier this month. Chinese suppliers have been ready to provide almost similar prices, while their prices were at least $10/mt higher earlier. The tradable price level in Singapore has been assessed at $495/mt CFR this week.
In the Hong Kong market, offer prices of ex-China rebar have been heard at $505/mt CFR, actual weight, being among the lowest market prices.
Average rebar spot prices in China have lost RMB 153/mt ($21.3/mt) compared to November 8, standing at RMB 3,417/mt ($475/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,232/mt ($449/mt), decreasing by RMB 135/mt ($18.75/mt) or 4.0 percent since November 8, while down 2.83 percent compared to the previous trading day, November 14.
$1 = RMB 7.1992
