During the given week, prices for imported rebar in SE Asia have declined as previous attempts of suppliers to increase them have failed to sustain amid very slow demand in the region. Moreover, ex-China rebar prices have moved down, reflecting weak sentiment and outlook.
Ex-Malaysia rebar offers have been heard at $640/mt CFR, Singapore, theoretical weight, which has been more competitive than ex-Vietnam rebar offers which are $10-20/mt higher. Offers from the GCC have still been at $670-680/mt CFR Singapore, which, however, has been assessed as too high for now. Turkish mills were offering at above $700/mt CFR Singapore before holidays, being uncompetitive. As a result, the tradable level to Singapore has hit $640/mt CFR versus $650/mt CFR two weeks ago and $660/mt CFR last week.
Ex-China rebar offer prices have been heard at $650-670/mt FOB, for September shipment, moving down by $25/mt on average compared to July 8.
“Rebar futures prices have moved down sharply amid the prevailing bearish sentiments, while the high temperature will continue to negatively affect the demand for rebar in the near future, which will weaken the support to rebar market,” an international trader said.
Average rebar spot prices in China have lost RMB 340/mt ($50.4/mt) compared to July 8, standing at RMB 3,943/mt ($584/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 15, rebar futures at the Shanghai Future Exchange are standing at RMB 3,589/mt ($532/mt), decreasing by RMB 607/mt ($90/mt) or 14.5 percent since July 8.
$1 = RMB 6.7503