SteelOrbis has been informed that the ex-China HRB400 grade 20 mm rebar export price has been at $460-470/mt FOB during the week ending September 18. At the same time, bids have been coming from Singapore and Hong Kong at $435-440/mt for ex-China rebar, FOB on theoretical weight basis, $25-30/mt below the official offers from Chinese mills.
Such low bids have started to come after the latest transactions at $440/mt CFR on theoretical weight basis to Singapore for ex-Turkey rebar and $440-450/mt CFR on actual weight basis to Hong Kong for ex-Qatar material. According to market sources, offers from the Middle East are still heard at $450//mt CFR on actual weight basis to Hong Kong and at $445/mt CFR on theoretical weight basis to Singapore, but customers have been reluctant to purchase as they have already booked some tonnages. Offers have been mostly for November shipment.
Sentiments have become cautious in the local rebar market in China this week amid lower iron ore prices. Rebar futures at the Shanghai Future Exchange have decreased by RMB 56/mt ($7.9/mt) since last Thursday, reaching RMB 3,493/mt ($494/mt) on Wednesday, September 18. Average spot rebar prices in China have added RMB 20/mt ($3.0/mt) from September 11 to September 18, reaching RMB 3,840/mt ($543/mt) ex-warehouse, according to SteelOrbis’ information.
Approaching the National Day holiday (October 1-7), environmental protection measures will be strictly implemented, including measures restricting transportation, which will support local rebar prices and will not lead to active export sales from China.