Customers from Singapore have resumed purchases of imported rebar recently with at least one deal done from Turkey. Prices have gone up, supported by stronger scrap prices and relatively good demand over the past few weeks in Asia.
The deal for 50,000 mt of ex-Turkey rebar was closed to Singapore at $463/mt CFR on theoretical weight basis last week, up by $3/mt compared to the previous tradable level to Singapore. In addition another sizeable order for Turkish rebar is said to be under negotiation, SteelOrbis has learned. The targeted price is $465/mt CFR minimum. Booking to Singapore has been resumed after a long pause and is partly connected with traders’ needs to cover their positions.
Offer prices of ex-Turkey rebar have been at $485-490/mt CFR Hong Kong, actual weight, up around $15/mt from the latest contracts reported last week, as bullish sentiments have prevailed among producers in Turkey. This level is still more attractive for buyers compared to ex-China rebar offer prices - at around $500/mt CFR Southeast Asia.
During the given week, ex-China rebar offer prices have moved sideways amid declining rebar futures prices and the appreciation of the Chinese currency, which is at its strongest level of the past two years. Ex-China rebar offer prices have been heard at $470-495/mt FOB, though some steelmakers have stopped giving offer prices due to the rapid appreciation of the Chinese currency.
Demand for rebar in the local market in China is at decent levels, while inventory has been at relatively high, exerting a negative impact on the rebar market. Average rebar spot prices in China have gained RMB 20/mt ($3/mt) week on week to RMB 3,857/mt ($578/mt) ex-warehouse, according to SteelOrbis’ information.
As of October 23, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,616/mt ($542/mt), decreasing by RMB 16/mt ($2.4/mt) or 0.44 percent since October 16.
$1 = RMB 6.6703