During the given week, suppliers have been insisting on higher prices for imported rebar in Southeast Asia amid more expensive scrap, while bids have mostly been lagging behind.
There is information in the market about a sizable volume of rebar sold at $760/mt CFR on actual weight basis to Hong Kong. The origin of the material is unknown at the time of publication, while the seller is a trader. For most exporting mills, this price already seems low, taking into account rising scrap prices.
For instance, Indian and Middle Eastern suppliers may offer $760-770/mt CFR on theoretical weight basis to Singapore, while Turkish sellers are aiming for above $780/mt CFR Singapore. Customers from this country have not been active and bids have been at $740-750/mt CFR on theoretical weight basis at the highest.
The bearish mood among importers in Southeast Asia has also been due to weakening in China. Ex-China rebar offer prices have been heard at $860-890/mt FOB, for December shipment, moving down by $20/mt on average compared to the stable trend a week earlier.
“China’s central government has cracked down on malicious speculation on coal, negatively affecting ferrous metal futures prices, and, though the supply of rebar has decreased, inventory levels have still declined, signaling the weak situation both in demand and supply, and so market players mostly hold a cautious stance as regards the future prospects for the rebar market,” an international trader said.
Average rebar spot prices in China have lost RMB 387/mt ($60.5/mt) week on week to RMB 5,480/mt ($856.25/mt) ex-warehouse on October 23, according to SteelOrbis’ information.
On October 25, rebar futures contract (2201) offers closed at RMB 4,825/mt ($754.6/mt) at Shanghai Futures Exchange, down RMB 597/mt ($93.4/mt) or by 11.0 percent compared to October 18.