Ex-ASEAN rebar offers have hit its bottom for now, as ex-China prices have moved up compared to the previous week amid the increasing futures prices and improved local demand. Even though the Asian import market is not that ready for any increase, market sources believe that prices will bottom up gradually after more sales seen in the market.
Ex-China rebar offer prices have been heard at $530-540/mt FOB, May shipment, moving up by 10/mt on average compared to March 29.
During the given week, demand for rebar has improved and inventory has seen declines, exerting a positive impact on its prices in spot market. At the same time, rebar futures prices have seen increases, bolstering market sentiments, import iron ore prices have also moved up, providing certain support to rebar prices from cost side. It is thought that rebar prices in the Chinese domestic market will likely move on an uptrend in the coming week too.
Buyers in Singapore have been willing to buy at $510-520/mt CFR. The most competitive offer prices have remained from Malaysia - at $520/mt DAP, Singapore, translating to $515/mt CFR, while there was room for negotiation on this offer and $510/mt CFR is also a workable level, according to sources. Two weeks back, the tradable price in Singapore was $520/mt CFR.
At the same time, offer prices of ex-Vietnam rebar have been heard at $530/mt FOB, theoretical weight, up by $5/mt over the past two weeks.
In Hong Kong, offer prices of ex-Malaysia rebar have been heard at $530/mt CFR, actual weight, though this level is $5/mt below that seen in late March, additional discounts at $5-10/mt considered last week have been withdrawn.
Average rebar spot prices in China have gained RMB 110/mt ($15.5/mt) compared to March 29, standing at RMB 3,660/mt ($515.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 12, rebar futures at Shanghai Futures Exchange are standing at RMB 3,628/mt ($511/mt), increasing by RMB 216/mt ($28.2/mt) or 6.3 percent since March 29, while up 0.95 percent compared to the previous trading day, April 11.
$1 = RMB 7.0967