During the given week, import rebar prices in Southeast Asia have increased again amid higher scrap prices globally. Ex-China rebar offers have also moved up amid the increasing trend seen in rebar futures prices, iron ore prices and local rebar prices in China.
The high levels of scrap prices have bolstered rebar offer prices from Turkey and Qatar to $670/mt CFR Singapore on theoretical weight basis. A small deal for ex-Turkey rebar has been closed at around $650-655/mt CFR Singapore as a top-up cargo to a previous order, as SteelOrbis reported earlier this week. This means that the workable price level in Singapore has increased by $10-15/mt from the highest possible level last week.
After Indian sellers sold at least two cargoes with one confirmed to Hong Kong at $625/mt CFR actual weight, no cheap sales from India have been heard recently. At the same time, offers from the traditional suppliers, like Turkey, are not below $680/mt CFR to Hong Kong, while offers from China are at up to $700/mt CFR.
Ex-China rebar offer prices have been heard at $650-670/mt FOB for April shipment, moving up by $20/mt on average compared to February 19. “The rising trend in rebar futures prices and iron ore prices has positively affected ex-China rebar prices,” an international trader said.
Following the rises in ex-China rebar prices, Southeast Asian buyers have been reluctant to conclude purchases, and so Chinese steelmakers have mostly held a wait-and-see stance. Ahead of the long holiday, buyers in Hong Kong had purchased sufficient rebar volumes.
Average rebar spot prices in China have gained RMB 133/mt ($20.6/mt) week on week to RMB 4,690/mt ($725/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 26, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,677/mt ($699/mt), increasing by RMB 153/mt ($23.6/mt) or 3.4 percent since February 19.
$1 = RMB 6.4713