Over the past two weeks, ex-China rebar offer prices have moved down due to the declines in rebar futures prices and local prices, following the escalation of trade tensions and amid falling raw material prices. This has led to drop in the import rebar market in Southeast Asia and some deals may be disclosed soon, as market sources believe that we are close to bottom and price may rebound shortly.
Ex-China rebar offer prices have been heard at $450-460/mt FOB, for June shipment, moving down by $15/mt on average compared to March 28.
This week, the average rebar prices in the Chinese domestic market have decreased amid the prevailing bearish sentiments due to the tariff issue between the US and China. The US tariff measures have brought huge uncertainties to the global steel market, exerting a negative impact on rebar prices. However, market participants sense that the tensions have eased to a certain degree, which may affect the future rebar market. Inventories of rebar have been consumed amid the slightly improving apparent consumption in China, bolstering prices. It is thought that rebar prices in the Chinese domestic market will likely rebound in the coming week.
In the Singapore market, the offer prices of ex-Malaysia rebar have been heard at $475/mt DAP, theoretical weight, down $15/mt from late March. This translates to $465-470/mt CFR. Negotiations for ex-China rebar have been held at $470/mt CFR, while some buyers have been voicing bids even at $450/mt CFR, theoretical weight.
In the Hong Kong market, the tradable level for import rebar has been reported at $455/mt CFR, actual weight, moving down by $20/mt since late March.
Average rebar spot prices in China have lost RMB 70/mt ($9.7/mt) compared to March 28, standing at RMB 3,250/mt ($451/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 11, rebar futures at Shanghai Futures Exchange are standing at RMB 3,131/mt ($456/mt), decreasing by RMB 66/mt ($9.2/mt) or 2.1 percent since March 28, while up 0.26 percent compared to the previous trading day, April 10.
$1 = RMB 7.2087
