During the given week, ex-China rebar offer prices have edged up slightly amid the improving demand locally and good expectations as regards the future prospects for the rebar market. At the same time, higher ex-ASEAN offers have been reported in Southeast Asian market too, but buyers have been trying to resist them.
Ex-China rebar offer prices have been heard at $610-640/mt FOB for April shipment, up by $5/mt on average compared to February 10.
“Bullish sentiments have prevailed among most market players ahead of the National People's Congress and the Chinese Political Consultative Conference (NPC&CPPCC) as they expect stimulus policies to boost economic development, though demand has not improved to the level that market players had expected and so some market players have been cautious,” an international trader said.
Offer prices of rebar from Indonesia, Taiwan and Malaysia have increased to $650-660/mt FOB amid the expected improved demand in spring, while rare counteroffers have been heard from buyers in Singapore and Hong Kong.
Traders have been offering rebar from Malaysia at $660/mt delivered to Singapore on theoretical weight basis, which translates to $650/mt CFR. Last week, the tradable level was at $640/mt CFR Singapore.
Average rebar spot prices in China have gained RMB 37/mt ($5.4/mt) compared to February 10, standing at RMB 4,270/mt ($622/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 17, rebar futures at the Shanghai Future Exchange are standing at RMB 4,167/mt ($607/mt), moving up by RMB 93/mt ($13.6/mt) or 2.3 percent since February 10.
$1 = RMB 6.8659