During the past week, rebar prices in Asia have moved up sharply amid surging iron ore prices and scrap prices. Offers from Turkey have become very high for buyers in Asia recently while, even after the latest increase, ex-China prices have started to be more competitive.
Early last week, offer prices of ex-Turkey rebar were heard at $580-585/mt CFR Hong Kong, actual weight, for March shipment, up by $20-25/mt from the previous level amid increasing scrap prices. The latest deal has been reported at $580/mt CFR Hong Kong, but this price level is not available from Turkey and most other suppliers any more, sources have said. Turkish mills would have been asking not below $600/mt FOB, which translates to $630/mt CFR Hong Kong and above. Traders said that Turkish steel mills stopped giving firm offer prices for rebar to Asia in the latter part of last week.
In Singapore, offers, which were considered reasonable, were at $570-575/mt CFR, theoretical weight, in the earlier part of last week, up by $20-25/mt. But by the end of the week, there were no offers below $585-590/mt CFR from any sources. Indicative price levels for rebar from Turkey to Singapore have reached $610/mt CFR.
Ex-China rebar offer prices were heard at $575-590/mt FOB for late February shipment on Friday, December 11, edging up by $32.5/mt on average compared to December 4. “Steel mills have raised ex-China rebar prices significantly and limited their supplies for sale. For instance, a major steelmaker in eastern China has stopped giving offer prices,” an international trader said. But on Monday, December 14, weaker sentiment in the local market pushed prices from China down to $570-580/mt FOB. They have started to become more competitive in the import market in Southeast Asia after the more rapid increase in offer prices from Turkey.
In the local market in China, transaction activities in the rebar market have slowed down due to colder weather, while continuously surging iron ore prices have bolstered rebar prices over the past week Rebar prices in the Chinese domestic market may edge down in the coming week as market players have started to feel cautious as regards the future prospects for the market.
Average rebar spot prices in China have gained RMB 117/mt ($18/mt) week on week, according to SteelOrbis’ information. But on December 14, rebar futures contract (2101) offers closed at RMB 3,988/mt ($609/mt) at Shanghai Futures Exchange, up RMB 8/mt ($1.2/mt) or by 0.2 percent since December 7 and down by 2.92 percent compared to the previous trading day.