Asian rebar prices have remained under pressure from weak demand, negative sentiments and falling raw material prices in China. The outlook has also remained negative.
Ex-China rebar offer prices have been heard at $445-460/mt FOB, remaining stable on average compared to June 6.
During the given week, demand for rebar has been slack amid the widespread rainy weather and weak construction activities. Meanwhile, coke prices have seen a third round of declines, weakening the support for rebar prices from the cost side. Typhoon Wutip is going to hit southern China, which will negatively affect the rebar market there. It is expected that rebar prices in the Chinese domestic market will see further decreases in the coming week.
In the Singapore market, offer prices of ex-Malaysia rebar have been heard at $460/mt DAP, theoretical weight, down $5/mt compared to last week. This translates to $450-455/mt on CFR basis. Offer prices of ex-China rebar stand at $460-465/mt CFR, theoretical weight, remaining stable week on week, though market participants said that it is possible to get $5/mt lower.
In the Hong Kong market, buyers’ counter-offer target prices stood below $455/mt CFR, actual weight, while offer prices of ex-Malaysia rebar have been heard at $460-465/mt CFR, actual weight, down $2.5/mt on average week on week.
Average rebar spot prices in China have lost RMB 17/mt ($2.4/mt) compared to June 6, standing at RMB 3,140/mt ($436/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 13, rebar futures at Shanghai Futures Exchange are standing at RMB 2,969/mt ($413/mt), decreasing by RMB 6/mt ($0.8/mt) or 0.2 percent since June 6, while down 0.2 percent compared to the previous trading day, June 12.
$1 = RMB 7.1772
