Suppliers insist on higher rebar prices in Asia amid scrap rises, bids lag behind

Monday, 25 October 2021 15:57:42 (GMT+3)   |   Shanghai
       

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.


Similar articles

UAE-based ESA cuts wire rod prices for April despite better demand

28 Mar | Longs and Billet

Turkish domestic dollar-based rebar spot prices soften

28 Mar | Longs and Billet

Asian wire rod market tumbles amid pessimism in China

28 Mar | Longs and Billet

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

MOC: Average steel prices in China down slightly during Mar 18-24

28 Mar | Steel News

Rebar consumption in Mexico decreases 3.1 percent in January

27 Mar | Steel News

US rebar prices mostly stable with occasional deals

27 Mar | Longs and Billet

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Turkey seeks to raise rebar export offers, demand mostly seen locally

27 Mar | Longs and Billet

Iskenderun-based Turkish mill increases its rebar price      

27 Mar | Longs and Billet