During the given week, ex-China rebar offer prices have moved down sharply, reflecting a further weakening of the local market. As a result, further declines are expected in Southeast Asia’s import market.
Ex-China rebar offer prices have been heard at $770-800/mt FOB, for January shipment, moving down by $35/mt on average compared to November 5.
“The continuous production restrictions and slack demand have exerted a negative impact on the rebar market, while the sharp declines in ex-China rebar offer prices have also exerted a negative impact on other countries’ export offer prices,” an international trader said.
Ex-Turkey rebar offer prices have been heard at $740-750/mt CFR Singapore, theoretical weight, while offers from the Middle East have remained at $740-745/mt CFR Singapore. Bids are hardly above $720/mt CFR for cargoes from mills, while the tradable levels for traders’ position rebar lots with shipment in the second and third quarters next year are much lower. If ex-China offer prices of rebar edge down further, China will likely come back to the export market.
Average rebar spot prices in China have lost RMB 120/mt ($18.8/mt) week on week to RMB 4,843/mt ($757/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 12, rebar futures at the Shanghai Future Exchange are standing at RMB 4,249/mt ($664/mt), increasing by RMB 2/mt ($0.3/mt) since November 5.
$1 = RMB 6.4065