Though prices for rebar in the local Chinese market had been dropping before the holidays and the downtrend had started in the export market, sources have been cautious in their expectations for the post-holiday period.
The gap between ex-China and ex-Turkey export offers for rebar has remained high - at $470-480/mt FOB against $450-455/mt FOB. The latest offers for ex-Turkey rebar in Hong Kong were still heard at $480/mt CFR actual weight basis with $5/mt discounts possible. The indicative level in Singapore has remained at $465-470/mt CFR on theoretical weight basis, with demand being slack.
The expectations for ex-China rebar prices are mixed. While some sources believe that the downtrend will continue, some said that the production restrictions in northern China from October and some short-lived rebound of domestic demand will prevent a downtrend in the export market.