Increasing rebar prices in the local Chinese market have provided support for export prices from China and also import quotations in Southeast Asia. Though the market has yet to settle, most market sources believe that buyers will have to accept some price increase even though demand is not expected to be strong in June which is the traditional start of the offseason.
Ex-China rebar offer prices have been heard at $510-530/mt FOB for July shipment, increasing by $10/mt on average over the past week, though large mills have been quoting even higher - at $550/mt FOB. “During the given week, rebar futures prices have moved up sharply since Wednesday, signaling improved sentiments among market players. Production and consumption have increased in China, while demand for rebar is expected to slacken due to the hot weather in the approaching summer season,” a trader said.
Deals of ex-Middle East and ex-Malaysia rebar have been heard at $560-570/mt CFR Singapore, theoretical weight, up slightly from $560/mt CFR reported last week. Sentiments in the Southeast Asian rebar market have improved amid the rebounding trend of rebar prices in the Chinese domestic market.
Average rebar spot prices in China have gained RMB 103/mt ($14/mt) compared to May 29, standing at RMB 3,747/mt ex-warehouse, according to SteelOrbis’ information.
On June 5, rebar futures contract (rb2210) offers closed at RMB 3,638/mt ($513/mt) at Shanghai Futures Exchange, increasing by RMB 127/mt ($18/mt) or 3.6 percent compared to May 29.