During the given week, ex-China rebar offer prices have increased further amid surging iron ore prices and rising local rebar prices. At the same time, offers from China have been among the most competitive recently, taking into account the sharp rises in prices from Turkey and the Middle East.
Ex-China rebar offer prices have been heard at $580-600/mt FOB for March shipment, rising by $7.5/mt on average compared to December 11. “The rising costs made steel mills suspend giving their offer prices for rebar after completing their export quota for the given week, as they expected prices to rise further,” an international trader said.
According to sources, one deal for ex-China rebar was done to a trader for the Hong Hong market at $590/mt CFR, up by $10/mt from the tradable level last week, but by the end of the week most offers have been reported at much above $600/mt CFR to Hong Kong.
In Singapore, buyers have been looking for import rebar cargoes, but offers have gained $600-620/mt CFR theoretical weight. Bids have been reported at around $580/mt CFR. Ex-Turkey rebar prices have kept surging and reached $615-620/mt CFR Singapore.
In the local market in China, ferrous metal futures prices have moved up sharply in the given week: for instance, iron ore futures prices surged by 6.23 percent to RMB 1,073.5/mt ($164.4/mt) on December 18 and rebar futures prices have moved up by 3.68 percent to RMB 4,316/mt ($661/mt). Due to environmental protection aims, the supply of rebar has been tight, while demand has been sluggish in northern China. The high levels of iron ore prices and coal prices will bolster rebar prices in the near future.
Average rebar spot prices in China have gained RMB 123/mt ($19/mt) week on week to RMB 4,310/mt ($660/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,316/mt ($661/mt), increasing by RMB 283/mt ($43.3/mt) or 7.02 percent since December 11.
$1 = RMB 6.5315