During the given week, ex-China rebar offer prices have moved down significantly, following sharp declines in the local market, in futures prices and in prices of raw materials, like iron ore. Ex-ASEAN suppliers have also been cutting prices, though their prices are still a little higher than Chinese offers.
Ex-China rebar offer prices have been heard at $530-540/mt FOB, for May shipment, moving down by $15/mt on average compared to March 8. During the given week, inventory of rebar in the Chinese domestic market has continued to rise, resulting in bearish sentiments prevailing among market players, while rebar futures prices have indicated continuous decreases. “The lack of confidence as regards the future prospects for the rebar market has dragged down rebar prices, though rebar producers have implemented production halts and this may bolster prices in the near future to a certain degree,” an international trader said.
The sharp declines in iron ore prices exerted a negative impact on rebar prices in Singapore. The offer prices of ex-Malaysia rebar have been heard at $545/mt DAP or $540/mt CFR, losing $15/mt from the previous ex-ASEAN offers at $555/mt CFR at the lowest last week. The relatively high inventory levels in Singapore have negatively affected the rebar market. At the same time, the slack demand from downstream users in Singapore has made buyers reluctant to conclude purchases.
In Hong Kong, offer prices of ex-Vietnam rebar have been heard at $545/mt CFR, actual weight, falling by $10/mt over the past week, while reference deal prices of ex-China rebar have been heard at $540-545/mt CFR, on actual weight. The Chinese price levels are the most competitive at the moment.
Average rebar spot prices in China have lost RMB 194/mt ($27.3/mt) compared to March 8, standing at RMB 3,603/mt ($507.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,490/mt ($491.5/mt), decreasing by RMB 201/mt ($28.3/mt) or 5.45 percent since March 8, while down 1.77 percent compared to the previous trading day, March 14.
$1 = RMB 7.0975