During the given week, the lower deal price level which has been rumored since last week has been confirmed in deals for Turkish rebar in Southeast Asia. Most Chinese rebar exporters have been out of the market due to the tax rebate uncertainties, while some mills have increased their offers.
Ex-Turkey rebar offers have been heard at $670-675/mt CFR Singapore on theoretical weight basis, while a deal was confirmed at $655/mt CFR a week ago and other booking was also confirmed to Singapore at the same level over the past week. Also, a deal for Turkish rebar has been heard at $675-680/mt CFR to Hong Kong on actual weight basis, which is almost in line with deals to Singapore on FOB basis for Turkish sellers.
Chinese products have been uncompetitive in the export market. Ex-China rebar offer prices have been heard at $690-710/mt FOB, for May shipment, moving up by $10/mt on average compared to March 19. “The rumors about the cancellation of the export tax rebate have affected ex-China rebar offer prices, while the prospects for rebar exports are even slimmer due to the bullish sentiments among market players in the local market,” an international trader said.
Average rebar spot prices in China have gained RMB 93/mt ($14.2/mt) week on week to RMB 4,717/mt ($735.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 26, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,934/mt ($754/mt), increasing by RMB 188/mt ($28.7/mt) or 3.96 percent since March 19.
$1 = RMB 6.5376