During the past week, ex-Turkey rebar offer prices have been heard at $440-445/mt CFR Singapore, theoretical weight, for September shipment. While most customers are still in wait-and-see mode, bids may not be above $420/mt CFR, sources have said. Indian suppliers can offer at the same price level.
As reported last week, a deal for 55,000 mt from Turkey was at $440/mt CFR on actual weight basis to Hong Kong, but after that the Turkish mills have increased their offers to $420/mt FOB minimum and freight is also on the rise, and so their offers have become uncompetitive.
Meanwhile, ex-Vietnam rebar offers have been heard at $460/mt CFR China, theoretical weight, but are not attractive to buyers.
Continuously rising local rebar prices have bolstered ex-China rebar offer prices. Ex-China rebar offers from mills currently stand at $460-475/mt FOB, moving up by $5/mt on average week on week. “The increasing rebar futures prices at Shanghai Futures Exchange (SHFE) have provided solid support for market sentiments amid the bullish stock market, while rainy weather and floods have still negatively affected construction activities in China,” a trader said.
Average rebar spot prices in China have gained RMB 3/mt ($0.4/mt) week on week to RMB 3,780/mt ($540/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 17, rebar futures at the Shanghai Future Exchange are standing at RMB 3,690/mt ($512/mt), increasing by RMB 36/mt ($5.1/mt) or 1.0 percent since July 10.
$1 = RMB 7.0043
