Rebar importers in Asia have been dropping their bid prices further this week, seeing renewed pressure on construction from the outbreak of Covid-19. Most suppliers have also been lowering offers and further discounts are possible in the near future. In contrast, ex-China rebar prices have posted some slight increase.
Among stray deals for import rebar in SE Asia was a contract for 25,000 mt of ex-India rebar to Hong Kong at $730/mt CFR on actual weight basis. This level has been assessed as being too low and as not reflecting the common real market level, as most major sources have been asking for 790/mt CFR in Hong Kong and the lowest possible level from other countries has been assessed as being not below $770/mt CFR Hong Kong.
Offers for ex-ASEAN, ex-Turkey and ex-Oman rebar have been heard at $770-780/mt CFR to Singapore on theoretical weight basis. Due to health controls amid the Covid-19 pandemic in Malaysia, Vietnam, Thailand and Singapore, construction activities have slowed down, slackening demand for rebar. Buyers in Singapore have dropped their price ideas to below $750/mt CFR. On Friday, reports have started to be heard according to which Turkish sellers may agree to sell at $750/mt CFR to Singapore as local prices have fallen, but Asian buyers have stayed away from active negotiations so far.
At the same time, during the given week, ex-China rebar offer prices have edged up amid fluctuations in local rebar prices and the rebounding trend in rebar futures prices. Ex-China rebar offer prices have been heard at $860-910/mt FOB, for July shipment, moving up by $15/mt on average compared to May 28. “Buyers from overseas markets have mostly held a wait-and-see stance, while the high level of raw material prices bolstered ex-China rebar prices,” an international trader said. Offer prices of ex-China rebar of British standard have been heard at $910/mt FOB, while for Chinese standard offers have been heard at $860/mt FOB, higher than local rebar prices.
Average rebar spot prices in China have gained RMB 166/mt ($26/mt) week on week to RMB 5,193/mt ($810/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 4, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,159/mt ($805/mt), increasing by RMB 226/mt ($35.3/mt) or 4.6 percent since May 28.
$1 = RMB 6.4072