Offers prices for rebar in Asia have moved down this week due to sluggish demand, suppliers from the Middle East have been still offering the most competitive prices.
In the given week, HRB 400 grade 20 mm rebar has been heard offered at $435/mt CFR Hong Kong, on actual weight basis, which is $5-10/mt below the level before Chinese holidays, with the origin of the material being unknown. Moreover, ex-Qatar rebar has been available at $430/mt CFR Hong Kong.
The tradable level of price in Singapore has been at $425/mt CFR theoretical weight basis, down $5/mt compared to late September.
SteelOrbis has been informed that the ex-China HRB400 grade 20 mm rebar export price has been at $450-470/mt FOB during the week ending October 11, with the prices on low-end $5/mt lower than that recorded on September 30.
Bearish sentiments prevailed in the local rebar market in China following the week-long holiday as market players expected for increases in capacity utilization rate on steel mills’ sides after production restrictions for holiday. Rebar futures at the Shanghai Future Exchange have decreased by RMB 63/mt ($9.0/mt) since September 30, reaching RMB 3,407/mt ($481.7/mt) on Friday, October 11, though hitting low price of RMB 3,372/mt ($476.7) in trading session. Average spot rebar prices in China have lost RMB 23/mt ($3.3/mt) from September 30 to October 11, reaching RMB 3,857/mt ($543/mt) ex-warehouse, according to SteelOrbis’ information.
However, Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has increased its offer prices for rebar by RMB 30/mt ($4/mt) for October 11-20, which together with still high iron ore prices will prevent ex-China rebar prices from further visible drop.