During the given week, ex-China rebar offer prices have remained stable compared to the previous week amid slightly declining rebar futures prices and the lack of the expected improvement in local rebar prices after the May Day holiday.
Ex-China rebar offer prices have been heard at $540-560/mt FOB for July shipment, moving sideways on average compared to April 26. “Following the Labor Day holiday, rebar prices in the Chinese domestic market moved up first while edging down later. The rises in coke prices has bolstered rebar prices from the cost side, but demand from downstream users has been slack,” an international trader said. Though inventories of rebar have seen declines, which will exert a positive impact on the rebar market, it is thought that rebar prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week
At the same time, offer prices of ex-Malaysia rebar were heard at $535/mt DAP, theoretical weight, to Singapore early this week and at $545/mt DAP in the middle of the week, increasing by up to $15/mt over the past two weeks. However, market sources believe that these rises were not reasonable and that the tradable level is still not above $530/mt CFR Singapore from the buyers’ view.
Offer prices of ex-Malaysia rebar have been heard at $550/mt CFR Hong Kong, actual weight, up by $5/mt from the pre-holiday period.
Average rebar spot prices in China have lost RMB 36/mt ($5.1/mt) compared to April 26, standing at RMB 3,727/mt ($525/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,662/mt ($516/mt), decreasing by RMB 23/mt ($3.2/mt) or 0.6 percent since April 26, while down 0.33 percent compared to the previous trading day, May 9.
$1 = RMB 7.1011