During the given week, ex-China rebar offer prices have moved sideways after the decline seen earlier and some deals at the lower levels have been reported in Asia, in Hong Kong in particular. Moreover, the short-term outlook is also bearish, taking into account the drop in futures prices on Friday.
Ex-China rebar offer prices from smaller mills have been heard at $520-530/mt FOB, September shipment, moving sideways on average compared to June 30. “During the given week, rebar prices in the Chinese domestic market have fluctuated within a limited range amid the similar trend in rebar futures, though they declined by 2.21 percent on July 7, signaling cautious sentiments among market players, and inventory level of rebar has risen with supply exceeding demand,” a trader said.
Offer prices of ex-China rebar have been heard at $550-560/mt CFR Hong Kong, actual weight, with a few deals being heard at this level.
In Singapore, no new deals have been confirmed so far, with the tradable level being at $550-555/mt CFR theoretical weight.
ASEAN rebar has mostly been exported to Europe as buyers in Southeast Asia have been unwilling to conclude purchases actively. The export prices from Indonesia and Malaysia are at $520-530/mt FOB.
Average rebar spot prices in China have lost RMB 20/mt ($2.8/mt) compared to June 30, standing at RMB 3,770/mt ($524/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 7, rebar futures at the Shanghai Future Exchange are standing at RMB 3,671/mt ($510/mt), moving down by RMB 50/mt ($6.9/mt) or 1.3 percent since June 30.
$1 = RMB 7.2054