During the given week, import rebar offers in Asia have posted little changes as the market has been halted for the most part of the week due to the holidays. But it has remained under strong pressure as most sources expect a further decline in prices and buyers’ price ideas have kept sliding.
Offer prices of ex-China rebar have been heard at $835-845/mt CFR Singapore, theoretical weight, and are not competitive for buyers. Ex-Malaysia rebar has been available at $830/mt CFR Singapore, almost the same as last week’s $830-835/mt CFR.
At the same time, buyers’ price ideas in Singapore have been heard at $820-825/mt CFR at the highest and most sources believe that rebar prices may go below this level by mid-May. In Hong Kong, bids have been heard at $815/mt CFR actual weight or below. Buyers in the ASEAN region have been willing to wait for better prices as they think rebar prices may decline since the traditional peak season is drawing to a close.
Ex-China rebar offer prices from mills have been heard at $800-820/mt FOB, June shipment, moving sideways on average compared to April 29.
“The strict control measures against the Covid-19 pandemic negatively affected the rebar market, while steelmakers have been seeking to hold prices stable amid the support from firm iron ore prices, while market players expected that steel prices may edge down in the near future,” an international trader said.
Average rebar spot prices in China have gained RMB 37/mt ($5.6/mt) week on week, standing at RMB 5,137/mt ($775/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 6, rebar futures at the Shanghai Future Exchange are standing at RMB 4,743/mt ($715.4/mt), decreasing by RMB 167/mt ($25.2/mt) or 3.4 percent since April 29.
$1 = RMB 6.6332