Most major rebar exporters have increased offers to the Asian market, following the sharp rises in scrap prices last week. At the same time, some local market participants in China have started to check the possibilities for rebar imports, starting negotiations with ASEAN-based suppliers.
In Southeast Asia, offers for ex-Turkey and ex-India rebar have increased to $760-780/mt CFR Singapore on theoretical weight basis, up from $730-750/mt CFR in early October. This is linked to the $34/mt week-on-week increase for prime HMS I/II 80:20 scrap in Turkey last week.
Ex-China rebar offer prices have been heard at $870-920/mt FOB, for December shipment, moving sideways on average compared to the rises recorded on October 8. There is almost no chance to do exports in the current situation.
At the same time, more talks about rebar imports have been heard in China. “Rebar futures prices at Shanghai Futures Exchange (SHFE) have moved down, but over the past week market players have started to be interested in import rebar from Malaysia and Indonesia amid the strict production restrictions and power supply shortages in China,” an international trader said.
Ex-Indonesia and ex-Malaysia rebar offer prices have been heard at $770/mt CFR China on theoretical weight basis. Market participants told SteelOrbis that imports would be difficult to China, but factories in Southeast Asia built with Chinese investments (such as Dexin Steel or Alliance Steel), may have less problems with Chinese standards.
Last week, average rebar spot prices in China declined by RMB 190/mt ($29.5/mt) week on week to RMB 5,867/mt ($911/mt) ex-warehouse on Friday, according to SteelOrbis’ information.