Offers for imported rebar in Southeast Asia have continued to move up over the past week, as sellers are expecting they will be accepted in the coming weeks due to high costs and anticipated restocking. However, during the given week, ex-China rebar offer prices have moved sideways and the mood in the market has worsened somewhat due to the drop in futures prices in China.
Offer prices of ex-Malaysia rebar have been heard at $590-610/mt CFR Singapore, theoretical weight, up by $10-25/mt from $580-585/mt CFR a week ago. Local buyers are expecting prices not above $580/mt CFR, but some market sources report that after the Christmas some customers may consider buying at $590-600/mt CFR Singapore for end of February-March shipment.
Meanwhile, offer prices of ex-Malaysia rebar were heard at $620/mt CFR Hong Kong, actual weight, while buyers believed they were too high.
Ex-China rebar offer prices have been heard at $580-600/mt FOB, for February shipment, moving sideways on average compared to December 16.
“Rebar futures prices moved down sharply from late last week, while edging up later in this week. The firm raw material prices provided solid support for rebar prices. Though China has issued policies to stimulate economic development, the mass infections of Covid-19 in China have exerted a negative impact on construction sites, weakening the support for rebar prices, and this situation will continue in the coming months, which will result in prevailing cautious sentiments among market participants,” an international trader said.
Average rebar spot prices in China have gained RMB 7/mt ($1.0/mt) compared to December 16, standing at RMB 4,080/mt ($584.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 23, rebar futures at the Shanghai Future Exchange are standing at RMB 4,005/mt ($580/mt), decreasing by RMB 44/mt ($6.3/mt) or 1.1 percent since December 16.
$1 = RMB 6.981