Prices for imported rebar in Asia have posted further declines over the past week amid slow demand, while the situation in China has continued to worsen.
The tradable level for imported rebar in Singapore has declined to $585/mt CFR Singapore theoretical weight, from last week’s levels of $590-600/mt CFR.
It is heard that 25,000 mt of ex-Oman rebar have been sold at $585/mt CFR to Singapore. Also, a smaller volume of ex-Middle East rebar, which is on the water already, has changed hands at close to $570/mt CFR.
Traders have still been offering at $590/mt CFR and higher for ex-ASEAN rebar in Singapore, as, even though scrap prices have been moving down in Asia, demand has not been supportive and price increases may lead to the full stoppage of the market. Nevertheless, at least one offer has been heard at the higher level of $620/mt CFR, Singapore, theoretical weight.
Buyers in Hong Kong have been willing to buy below $595/mt CFR, Hong Kong, actual weight, though most competitive offers have been at $605-610/mt CFR. Chinese rebar has remained less competitive compared to the Middle East or ASEAN origins.
Ex-China rebar offer prices have been heard at $620-640/mt FOB, November shipment, edging down by $10/mt on average compared to August 26. Even though traders and smaller mills have been ready to consider even lower levels, 605-610/mt FOB, demand has remained poor.
“The rebar moved on a decreasing trend, exerting a negative impact on market players’ sentiments, the sporadic Covid-19 cases being found in many regions of China, which made market players cautious towards the future prospects for the rebar market,” an international trader said.
Average rebar spot prices in China have lost RMB 163/mt ($24/mt) compared to August 26, standing at RMB 4,030/mt ($585/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 2, rebar futures at the Shanghai Future Exchange (main contract shifted from rb2210 to rb2301) are standing at RMB 3,637/mt ($528/mt), decreasing by RMB 229/mt ($33.2/mt) or 5.9 percent since August 26.
$1 = RMB 6.8917