During the given week, ex-China rebar offer prices have edged down amid the declining trend of rebar futures prices and the prevailing bearish sentiments among market players. In such conditions, import rebar prices in Southeast Asia, mainly ex-ASEAN prices, have also declined.
Ex-China rebar offer prices have been heard at $530-550/mt FOB, for June shipments, declining by $5/mt on average compared to April 28. “The continuously declining rebar futures prices have negatively affected rebar prices in the Chinese domestic market, while coke and iron ore prices have also moved down. Steelmakers have implemented production cuts, aiming to bolster rebar prices. However, some traders hold a pessimistic attitude as regards the future prospects for the rebar market due to the weak performance of the real estate industry,” an international trader said.
Offer prices of ex-Malaysia rebar have been heard at $580-590/mt CFR, Singapore, theoretical weight, down by another $10/mt over the past week. One deal has been rumored at the lower end of the range, but could not be confirmed by the time of publication.
Traders’ low-priced position offers of rebar to Hong Kong have remained at $580/mt CFR, actual weight. It is heard that sellers have been willing to conclude deals with buyers in distant market, like Europe, where, however, demand has also been limited.
Average rebar spot prices in China have lost RMB 83/mt ($12/mt) compared to April 28, standing at RMB 3,750/mt ($543/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 5, rebar futures at the Shanghai Future Exchange are standing at RMB 3,622/mt ($524/mt), edging down by RMB 38/mt ($5.5/mt) or 1.0 percent since April 28.
$1 = RMB 6.9114