During the given week, ex-China rebar offer prices have edged down slightly compared to the previous week, while ex-ASEAN suppliers have been even more aggressive, trying to push volumes.
Ex-China rebar offer prices have been heard at $485-495/mt FOB, for October shipment, decreasing by $2.5/mt on average compared to July 26, while some slight increase on the upper end was seen on Friday. During the given week, rebar prices in the Chinese domestic market have moved down further amid the prevailing bearish sentiments among market players. In the local market in China, due to the shift to the new production standard for rebar, sellers have been more willing to sell at lower prices, aiming to lower inventory levels and reduce potential risks. However, buyers have been cautious in concluding purchases for rebar. It is expected that rebar prices in the Chinese domestic market will continue their downtrend in the coming week, though at a slower pace.
Offer prices of ex-Malaysia rebar have been heard at $500/mt DAP Singapore, theoretical weight, down $7.5/mt on average week on week, against offer prices at $505/mt early this week. This price translates to $490-495/mt on CFR basis. A large vessel containing 50,000 mt is heard to have been sold to Singapore at $490-495/mt CFR, the lowest level seen for months. Chinese material was at $495-500/mt CFR, mainly for customers in Singapore.
In Hong Kong, demand for rebar has remained sluggish in the traditional offseason, but some smaller-volume deals for around 10,000-20,000 mt have been heard. Offer prices of ex-China and ex-Malaysia rebar have been heard at $500-505/mt CFR Hong Kong, actual weight, with the deal price level at $500/mt CFR.
Average rebar spot prices in China have lost RMB 47/mt ($6.6/mt) compared to July 26, standing at RMB 3,323/mt ($466/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 2, rebar futures at Shanghai Futures Exchange are standing at RMB 3,379/mt ($474/mt), increasing by RMB 8/mt ($1.1/mt) or 0.2 percent since July 26, while up 0.78 percent compared to the previous trading day, August 1.
$1 = RMB 7.1376
