During the given week, ex-China rebar offer prices have edged up slightly amid hopes for better demand supply balance in September. However, the situation in the Asian import rebar market has not improved with most other origins offers staying at the same low level, reported last week.
Ex-China rebar offer prices from small mills in the north have been heard at $520-530/mt FOB, October shipment, increasing by $5/mt on average compared to August 18. “During the given week, rebar futures prices indicated ups and downs amid the cautious sentiments among market players as the decline in the loan prime rate (LPR) was not as strong as market players expected, which affected rebar prices in the spot market. At the same time, though production restrictions will be implemented, they may be implemented strictly only later this year, resulting in the relatively high inventory level of rebar, which weakened the support to its prices,” an international trader said.
Offer prices of ex-Malaysia rebar have been heard at $540-545 mt DAP Singapore, which translates to $530-535/mt CFR, remaining stable from last week. Prices of Vietnam Hoa Phat rebar have been heard at $540-550/mt CIF Singapore, theoretical weight with one deal rumored in this range. The offer prices of ex-northern China rebar have been heard at $540-550/mt CFR, Singapore, theoretical weight. As a result, the reference price for import rebar in Singapore has remained at $530-540/mt CFR.
Average rebar spot prices in China have gained RMB 6/mt compared to August 18, standing at RMB 3,763/mt ($523/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 25, rebar futures at the Shanghai Future Exchange are standing at RMB 3,716/mt ($516/mt), decreasing by RMB 16/mt ($2.2/mt) or 0.4 percent since August 18.
$1 = RMB 7.1881