Lower prices have been reported in import rebar deals to Asia over the past week as overall sentiment has been bearish, while supply exceeds demand. During the given week, ex-China rebar offer prices have also edged down amid declining rebar futures prices in China and decreasing spot prices in the traditional off-season for business.
A cargo of 50,000 mt of ex-Middle East rebar is rumored to have been sold to Singapore at $735/mt CFR on theoretical weight basis, down by $5-10/mt compared to the tradable level last week. This price level has been assessed as “reasonable” by market sources. In late July, rebar from the Middle East was offered to Singapore at $750/mt CFR or so. Indian suppliers have been asking for $735-745/mt CFR in Singapore, but the signing of deals has not been confirmed by the time of publication. Offers for ex-Turkey rebar have been heard at $775-780/mt Singapore, theoretical weight.
An offer for ex-Vietnam rebar to Hong Kong, on actual weight basis, has been reported at $750/mt CFR.
Ex-China rebar offer prices have been heard at $850-880/mt FOB, for September shipment, moving down by $10/mt on average compared to July 30. “Sharply decreasing iron ore prices have weakened the support for rebar prices,” an international trader said.
Average rebar spot prices in China have lost RMB 123/mt ($19/mt) week on week to RMB 5,327/mt ($824/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 6, rebar futures at the Shanghai Future Exchange are standing at RMB 5,379/mt ($832.3/mt), decreasing by RMB 358/mt ($55.4/mt) or 6.24 percent since July 30.
$1 = RMB 6.4625