Prices for imported rebar in the Asian market have dropped further over the past week with some Indian suppliers providing low offers due to the negative situation in the local market. There has been a lack of offers from other sources and most market participants believe that prices for rebar in Asia have already reached the bottom and may rebound, following an increase in the scrap segment.
According to sources, a lot of 50,000 mt of ex-India rebar is rumoured to have been sold at $605/mt CFR Singapore on theoretical weight basis. This price level was heard to be workable for buyers last week, but no one from the traditional suppliers has been ready to provide such offers. Indian exports of rebar to Asia are not traditional as most Indian rebar is sold inside the country. The seller in this export deal was a large integrated steel mill which had some excess volume and faced subdued demand in the local market over past weeks.
The tradable price level for ex-Turkey rebar has been assessed at $615-620/mt CFR Singapore on theoretical weight basis. But an increase in export offers is expected amid higher scrap costs.
Chinese rebar exporters have left the market since the middle of last week due to the Chinese New Year holiday. The latest offer prices were at $630-640/mt FOB for April shipment last week. The post-holiday price trend outlook for the Chinese rebar market is positive.