Prices for import rebar in Southeast Asia have increased rapidly in offers, boosted by the surge in the scrap market and overall global uptrend. In addition, ex-China rebar offer prices have moved up sharply amid firm demand in the local market, surging local prices, increasing rebar and iron ore futures. However, futures prices have indicated sharp declines over the past two days, which may exert a negative impact on ex-China rebar offer prices in the near future.
As SteelOrbis reported last week, a deal of ex-Turkey rebar was done at $725/mt CFR Singapore, theoretical weight. This was the last transaction heard in the market so far, but offers voiced before holidays in Turkey have already increased to $790/mt CFR Singapore. And some sources report that suppliers will try to resume negotiations next week at up to at $800/mt CFR Singapore.
The offer prices of rebar from overseas sellers have been heard at $800-820/mt CFR Hong Kong, actual weight. A deal was rumored at $740/mt CFR a week ago.
Ex-China rebar offer prices have been heard at $980-1,000/mt FOB, for July shipment, moving up by $110/mt on average compared to that recorded on May 7. “The sharp rises in local rebar prices bolstered ex-China rebar offer prices, the increasing rebar futures prices following the Labor Day holiday also pushed up export prices, while the ferrous metal futures prices have seen downward corrections over the past two days, which may negatively affect rebar export prices in the near future,” an international trader said.
Average rebar spot prices in China have gained RMB 323/mt ($50/mt) week on week to RMB 5,570/mt ($861/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 14, rebar futures at the Shanghai Future Exchange are standing at RMB 5,641/mt ($875/mt), decreasing by RMB 37/mt ($5.7/mt) or 0.65 percent since May 7.
$1 = RMB 6.4525