Prices for import rebar in Asia from the major sources such as Turkey, the Middle East and India have fallen this week owing to lower scrap costs. Ex-China rebar offer prices have remained stable amid the rumors of the cancellation of the export tax rebate.
Ex-Oman and ex-India rebar offers have been heard at $670-675/mt CFR Singapore on theoretical weight basis this week, while some small discounts of about $5/mt have also been possible from Indian suppliers, according to sources. Last week, the deals to Singapore were reported at $685/mt CFR from Turkey and at $675/mt CFR from India. The price decline has been due to the further drop of scrap prices in the global market.
Moreover, there have been rumors about a sale of Turkish rebar at $655/mt CFR to Singapore this week, but this could not be confirmed by the time of publication.
Ex-China rebar offer prices have been heard at $680-700/mt FOB for May shipment, moving sideways on average compared to March 12. “The production resumption in Tangshan and rumors about the export tax rebate cancellation have negatively affected market players’ sentiments. Ex-China rebar prices have remained stable and some mills suspended their offers,” an international trader said.
Currently, surging freight rates have pushed up costs and made it hard to export. It is thought that ex-China rebar offer prices may remain stable in the coming week.
Average domestic rebar spot prices in China have lost RMB 23/mt ($3.5/mt) week on week to RMB 4,717/mt ($726/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 19, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,746/mt ($730/mt), increasing by RMB 17/mt ($2.6/mt) or 0.36 percent since March 12, but down by RMB 35/mt ($5.4/mt) compared to the previous day.
$1 = RMB 6.5098