During the given week, ex-China rebar offer prices have edged down compared to the previous week, which has impacted sentiments in the Asian market after a short-lived increase last week.
Ex-China rebar offer prices have been heard at $540-560/mt FOB, for July delivery, edging down by $10/mt on average compared to May 24. During the given week, rebar prices in the Chinese domestic market have edged down amid decreasing rebar futures prices. Demand from downstream users has been released in a limited way, exerting a negative impact on prices. It is the rainy season in some regions of China, negatively affecting construction activities and slackening the demand for rebar. It is thought that rebar prices in the Chinese domestic market will likely edge down further in the coming week.
Offer prices of ex-Malaysia rebar have been heard at $535-540/mt DAP Singapore, theoretical weight, losing $5/mt over the past week. This level translates to $530/mt CFR, being the most competitive in the market, but demand has been very slow.
Average rebar spot prices in China have lost RMB 53/mt ($7.5/mt) compared to May 24, standing at RMB 3,750/mt ($528/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 31, rebar futures at Shanghai Futures Exchange are standing at RMB 3,706/mt ($522/mt), decreasing by RMB 82/mt ($11.5/mt) or 2.2 percent since May 24, while down 1.78 percent compared to the previous trading day, May 30.
$1 = RMB 7.1088