During the given week, ex-China rebar offer prices have edged up amid the increases in the Chinese domestic spot market and increasing rebar futures prices. But the situation in Southeast Asia’s import market has not improved yet as demand has remained weak and a number of low-priced offers have still been seen there.
Ex-Turkey rebar has been offered at $720/mt CFR Singapore on theoretical weight, which corresponds to $670/mt FOB, down from $725-730/mt CFR a week ago. Though some sources said a deal has been done at this level, most sources denied this, saying that buyers in Singapore have been willing to buy at only $700-710/mt CFR.
A position cargo of ex-India rebar has been available at $715-720/mt CFR Singapore. The high level of freight costs exerted a negative impact on transaction activities for rebar in Southeast Asia.
Ex-China rebar offer prices have been heard at $860-890/mt FOB, for November shipment, moving up by $10/mt on average compared to September 3. “Rebar futures prices have indicated a continuous rising trend amid the supply shortage, while construction activities have been good in September, stimulating demand for rebar, and so bullish sentiments have prevailed among market players, though the decreasing iron ore prices may weaken the support for rebar prices,” an international trader said.
Average rebar spot prices in China have gained RMB 177/mt ($27.4/mt) week on week to RMB 5,520/mt ($855/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 10, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,640/mt ($873.6/mt), increasing by RMB 232/mt ($36/mt) or 4.3 percent since September 3.
$1 = RMB 6.4566