Prices for import rebar in Southeast Asia have increased, which has been confirmed in the latest deal from Algeria. Turkish suppliers are also in negotiations with customers in Asia at higher prices. Since demand is firm, as the uptrend continues in the scrap segment, and since the number of rebar sellers is still limited, prices may keep moving up, sources have told SteelOrbis.
A deal for 50,000 mt of rebar from the Algerian producer has been done to Singapore at $685/mt CFR theoretical weight. The previous deal for ex-Turkey rebar to this destination was at $670/mt CFR, as reported a week ago. This was the first sale by the Algerian steel maker to Southeast Asia.
Last week, a smaller lot of ex-India rebar was sold to Hong Kong at $685-690/mt CFR actual weight, following a contract for ex-Turkey rebar at $680-685/mt CFR actual weight. But after that, all offers have increased much above $700/mt CFR. Traders have been offering ex-Turkey rebar at $730-735/mt CFR Hong Kong and sources have said that the new deals will definitely be above $700/mt CFR to this destination.
During the given week, ex-China rebar offer prices have moved up amid the increasing trend in rebar futures prices and good demand locally. Ex-China rebar offer prices have been at $810-820/mt FOB, for June shipment, moving up by $10/mt on average compared to April 23. “The 13 percent tax rebate on rebar export has been canceled as market players expected, while buyers have accepted the fact as they had prepared for this over the past few weeks. Firm demand will bolster rebar prices in the local market and make it difficult for exports,” an international trader said.
Average rebar spot prices in China have gained RMB 110/mt ($17/mt) week on week to RMB 5,247/mt ($811/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 30, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,391/mt ($833.6/mt), increasing by RMB 92/mt ($14.2/mt) or 1.74 percent since April 23.
$1 = RMB 6.4672