During the past week, ex-China rebar offer prices have moved sideways with local prices indicating some increases based on the recent positive news regarding monetary policy in China. In these conditions, some suppliers of rebar have been trying to maintain or even push up offers to Southeast Asia, but there has been no support from buyers, at least so far.
Ex-China rebar offer prices have been heard at $530-540/mt FOB, for July shipment, moving sideways on average compared to June 9. “During the given week, rebar futures prices have moved on a rising trend, exerting a positive impact on prices in the spot market. But China’s investment data has not been very good, with further movement from policymakers awaited: for instance, the loan prime rate (LPR) is expected to decrease, which will bolster market sentiment and provide support for steel prices in the near future. At the same time, sluggish demand from downstream users in China may negatively affect the rebar market,” one trader said.
Offer prices of ex-China rebar have been heard at $550-560/mt CFR Singapore, theoretical weight, while offers of ex-Malaysia rebar have been at around $560/mt CFR. Some suppliers have been testing the market with $570/mt CFR Singapore offers, which are too high for importers. However, recently, infrastructure construction has been promoted in an orderly manner, resulting in improved interest in rebar. Since the traditional offseason is approaching, Russian sellers may be more active in giving offers to the Asian market, which may exert a negative impact on offer prices in Southeast Asia.
Average rebar spot prices in China have gained RMB 60/mt ($8.4/mt) compared to June 9, standing at RMB 3,827/mt ($537/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 16, rebar futures at the Shanghai Future Exchange are standing at RMB 3,799/mt ($533/mt), moving up by RMB 88/mt ($12.3/mt) or 2.4 percent since June 9.
$1 = RMB 7.1289