During the given week, ex-China rebar offer prices have edged down slightly, as well as some prices from Malaysia, mainly as demand has been slack and rare bids have still been at low levels. Nevertheless, further declines in rebar prices in Asia are unlikely, taking into account the expectations for production cuts in China in the second half, amid the coming seasonal demand improvement and rebound in scrap prices.
Ex-China rebar offer prices have been heard at $510-530/mt FOB for October shipment, decreasing by $5/mt on average compared to a week ago.
“During the given week, more Chinese steelmakers were heard to be planning reductions in their crude steel outputs for the remainder of the current year, which will shrink the supply of rebar to the market and bolster prices. At the same time, it is heard that policies for the real estate industry are being adjusted in first-tier cities, including the loosening of restrictions on purchasing houses and reductions in downpayments, etc., which is likely to positively affect market sentiments, and the demand for rebar is expected to improve in the traditional peak season in September and October, which will exert a positive impact on rebar prices. So, it is expected that rebar prices in the Chinese domestic market will likely move sideways this week and edge up in late August,” an international trader said.
Offer prices of ex-Middle East rebar have been heard at $550-560/mt CFR Hong Kong, actual weight, while prices to Singapore have been at $540-545/mt CFR on theoretical weight basis.
Moreover, ex-Malaysia rebar offers have been heard at $540-545/mt DAP Singapore or $530-535/mt CFR, down by $5/mt over the past week.
Average rebar spot prices in China gained RMB 14/mt week on week by Friday, standing at RMB 3,757/mt ($522/mt) ex-warehouse, according to SteelOrbis’ information.