The situation in the import rebar market in Asia has been weak and the tradable prices have remained stable or even eased slightly despite the previous rises seen in the scrap segment. Poor demand and high stocks have been among the main reasons for the weak performance in the import rebar segment.
Inventory of rebar in Singapore has been sufficient, reflecting slack demand. At the same time, the sluggish demand in the Vietnamese market has made market participants willing to rely on exports to consume domestic supplies.
For instance, offer prices of ex-Vietnam rebar have been heard at $605-610/mt CFR Singapore, while a week earlier the most competitive offers were coming from Malaysia mainly. Ex-Malaysia rebar offers have been heard at $610/mt DAP Singapore, theoretical weight. At the same time, the tradable level has been $590-600/mt CFR Singapore, down slightly from $600/mt CFR last week. Traders have been ready to sell at $580/mt CFR Singapore for forward shipments of rebar, which will be shipped next year. But this price has been excluded from the SteelOrbis reference price due to the distant shipment dates.
The tradable level for imported rebar in Hong Kong has been at $610/mt CFR Hong Kong, actual weight, while buyers have still been unwilling to buy.
Ex-China rebar offer prices from mills have been heard at $630-650/mt FOB, October shipments, moving sideways on average compared to August 12.
“Rebar output increased in the given week amid the improved profitability on the steelmakers’ side, while the power shortages due to the high temperatures in eastern China and southwest China have negatively affected construction activities, which has weakened the demand for rebar,” an international trader said.
Average rebar spot prices in China have lost RMB 66/mt ($9.7/mt) compared to August 12, standing at RMB 4,157/mt ($611/mt) ex-warehouse, according to SteelOrbis’ information.
As of August 19, rebar futures at the Shanghai Future Exchange are standing at RMB 3,929/mt ($577/mt), decreasing by RMB 221/mt ($32.5/mt) or 5.3 percent since August 12.
$1 = RMB 6.8065