During the given week, ex-China rebar offer prices have remained stable, while quotations for ex-ASEAN rebar have also been stable with trading fading away. However, expectations for January are rather positive and suppliers may try to push prices up further in the next couple of weeks, though the success of any price hikes is questionable for now.
Ex-ASEAN rebar offers to Singapore have remained at $600/mt CFR on average, and buyers are unlikely to find any lower levels. Accordingly, if some customers need to restock in the near future, they will have to pay this price at least, though a week ago bids were heard at $580/mt CFR. The overseas market has been quite due to the Christmas-New Year holiday period.
Ex-China rebar offer prices have been heard at $580-600/mt FOB, for February shipment, remaining stable on average compared to December 23, while some mills have kept offers at higher levels of $600-610/mt FOB.
“Rebar futures prices have edged up, exerting a positive impact on rebar prices in the spot market, while the continuous rises in iron ore prices bolstered the rebar market, and increasing billet and coking coal prices also positively affected the market. Steelmakers are going to try to push up their offer prices as downstream users need to build up stocks for winter,” an international trader said.
Average rebar spot prices in China have gained RMB 67/mt ($9.6/mt) compared to December 23, standing at RMB 4,147/mt ($595/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 30, rebar futures at the Shanghai Future Exchange are standing at RMB 4,105/mt ($589/mt), increasing by RMB 100/mt ($14/mt) or 2.5 percent since December 23.
$1 = RMB 6.9646