During the past week, ex-China rebar offer prices have moved sideways, supported by the firm local market and rising futures prices. At the same time, Indian rebar is still the most competitive in Southeast Asia. But even despite the low price level heard in the latest booking, import rebar prices in Asia have started to increase on the back of rising costs and higher scrap prices in particular.
Ex-India rebar deal has been heard at $695/mt CFR Singapore on theoretical weight basis. This price is seen as the lowest in the market. But new offers from India have already started to be voiced at $710-715/mt CFR Singapore minimum. Some regional suppliers and mills from the Middle East have been offering at $720/mt CFR to Singapore and above, while last week most offers were at $710/mt CFR.
Ex-China rebar offer prices have been heard at $750-790/mt FOB, for March shipment, moving sideways on average compared to the previous week.
“Market players have been cautious in concluding rebar purchases, while inventory levels have declined compared to the previous week, which has provided some support for rebar prices in China,” an international trader said.
Iron ore prices have edged up over the past week, bolstering rebar prices from the cost side. Market participants have been cautious about building up stocks, waiting for better prices. The rising rebar futures prices have exerted a positive impact on rebar prices in the spot market.
Average rebar spot prices in China gained RMB 37/mt ($5.8/mt) in the week up to January 14, rising to RMB 4,787/mt ($752/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 14, rebar futures at the Shanghai Future Exchange were standing at RMB 4,664/mt ($732/mt), increasing by RMB 138/mt ($21.7/mt) since January 7.