Offers for import rebar have been heard at $450-455/mt CFR Hong Kong on actual weight basis for April delivery this week, which is $10-15/mt above last week’s level. The price level for Singapore has increased by $5-10/mt to $440-445/mt CFR on theoretical weight basis.
Trading activity has been limited recently following a number of deals to these countries from China for over 150,000 mt in total, sources have said. Most contracts have been signed at $425/mt FOB.
This week, SteelOrbis has been informed that Chinese mills’ export offer prices for rebar have been at $425-445/mt FOB and, though this is stable compared to last week when prices had lost $25/mt, major suppliers have been not ready to give $425/mt FOB any longer and have been insisting on $435/mt FOB and above. The last deal to Singapore was signed at $435/mt CFR theoretical weight basis late last week, which corresponds to about $430-435/mt FOB. “Participants in the Chinese rebar market have started to show a more bullish sentiment as more players will return to the market and more stock build-up could be seen following China’s measures to resume production,” a trader said.
China cut its benchmark lending rate on February 20, aiming to stimulate production and mitigate the impact of the outbreak of the coronavirus on some fragile sectors, exerting a positive impact on market players’ sentiments. Average rebar spot prices in China have lost RMB 67/mt ($9.5/mt) week on week to RMB 3,563/mt ($507.5/mt) ex-warehouse, according to SteelOrbis’ information, though a small increase of RMB 6/mt ($0.8/mt) has been seen today, February 21.
Meanwhile, rebar futures prices at Shanghai Futures Exchange (SHFE) have seen a rising trend. As of February 21, rebar futures at the Shanghai Future Exchange are standing at RMB 3,485/mt ($496.4/mt), increasing by RMB 81/mt ($11.5/mt) since February 12.
$1 = RMB 7.021