During the given week, ex-China rebar offer prices have edged down amid the declining trend in local rebar prices and slack demand during the rainy season. The situation in Southeast Asia has also worsened with demand remaining low and bid prices continuing to drop.
Offer price of ex-India rebar has been heard to Hong Kong at $755/mt CFR actual weight.
In Singapore, a trader has been offering a position cargo at $730/mt CFR theoretical weight, with no deal reported so far. This has been the lowest level in the market, while most Turkish and Middle Eastern mills have been asking for $770-780/mt CFR Singapore minimum. The tradable price level has been assessed at $730-740/mt CFR Singapore, down by $10-20/mt over the past week, but demand is expected to stay limited in the next few weeks as new restrictions have slowed down construction activities in Singapore.
Ex-China rebar offer prices have been heard at $860-900/mt FOB for August shipment, moving down by $5/mt on average compared to June 4. “The rainy season in eastern China will slacken the demand for rebar in the local market, though high levels of production cost will provide support for the rebar market, and so rebar prices may fluctuate within a limited range in the near future,” an international trader said.
Offer prices of ex-China rebar for British standard have been heard at $900/mt FOB, while offers for Chinese standard rebar have been heard at $860/mt FOB. Sufficient inventory in Hong Kong and Singapore has contributed to the slack demand for ex-China rebar.
Average rebar spot prices in China have lost RMB 60/mt ($9.4/mt) week on week to RMB 5,133/mt ($804/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 11, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,322/mt ($833/mt), increasing by RMB 163/mt ($25.5/mt) or 3.16 percent since June 4.
$1 = RMB 6.3856