During the past week, ex-China rebar offer prices have moved sideways, the same as prices from the ASEAN region. However, taking into account the uncertainty in the local Chinese market, some sellers may choose to provide some discounts to attract Asian customers before the Lunar New Year holiday.
Ex-China rebar offer prices from mills have been heard at $550-580/mt FOB, March shipment, moving sideways on average compared to January 12, with most sellers giving offers at the lower end of the range. During the given week, rebar prices in the Chinese domestic market have moved down amid the prevailing cautious sentiments among market players, while demand from downstream users has been slack. Nevertheless, market participants still expect stock replenishments ahead of the Chinese New Year holiday, which may bolster rebar prices to a certain degree, while, at the same time, import iron ore prices have edged up again since January 18 amid increasing futures prices, which will provide some support for rebar prices from the cost side too.
The tradable prices of rebar in the Singapore market have been heard at $560-565/mt CFR, theoretical weight, stable from last week. Offer prices of ex-Middle East rebar have been heard at $575/mt CFR Singapore, theoretical weight, for shipment during February and March. At the same time, official Malaysian offers have remained at $570/mt DAP.
In the Hong Kong market, the tradable prices of rebar have been heard at $570-575/mt CFR, actual weight. As the Chinese New Year holiday (February 9-16) is approaching, buyers have been willing to build up some stocks, exerting a positive impact on the rebar market.
Average rebar spot prices in China have lost RMB 20/mt ($2.8/mt) compared to January 12, standing at RMB 3,977/mt ($559/mt) ex-warehouse, according to SteelOrbis’ information.
As of January 19, rebar futures at the Shanghai Future Exchange are standing at RMB 3,915/mt ($551/mt), decreasing by RMB 13/mt ($1.8/mt) or 0.3 percent since January 12.
$1 = RMB 7.1167