During the given week, ex-China rebar offer prices have moved up further, following rises in futures prices again, while ASEAN region-based mils have followed the trend, seeing also increasing scrap prices.
Ex-China rebar offer prices have been heard at $560-580/mt FOB, for January shipment, moving up by $12.5/mt on average compared to December 1.
During the given week, rebar prices in the Chinese domestic market have indicated rises amid increasing rebar futures prices and rising iron ore futures prices, and given the bullish sentiments prevailing among market players. Moreover, rumors indicate that production of rebar may decrease due to environmental protection measures. “The rising iron ore prices have also bolstered rebar prices, which has resulted in limited room for negotiation on ex-China rebar prices, and making Chinese rebar uncompetitive in the export market,” an international trader said.
Offer prices of ex-Malaysia rebar have been heard at $550-555/mt CFR Singapore, theoretical weight, early this week or at around $560/mt DAP, which is among the most competitive offers at the moment. Other ASEAN mills are asking for $565-575/mt CFR Singapore at the lowest.
Meanwhile, offer prices for ex-Vietnam rebar are heard to have increased to $570-580/mt CFR Hong Kong, actual weight, for delivery in January.
Average rebar spot prices in China have gained RMB 56/mt ($7.9/mt) compared to December 1, to RMB 4,083/mt ($575/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 8, rebar futures at the Shanghai Future Exchange are standing at RMB 4,042/mt ($569/mt), increasing by RMB 74/mt ($10.4/mt) or 1.9 percent since December 1.
$1 = RMB 7.1123