During the given week, ex-China rebar offer prices have continued the downtrend compared to the previous week amid the declining rebar futures and still low demand. Following the trend in China and in raw materials, ASEAN suppliers have also cut prices further with some deals done.
Ex-China rebar offer prices have been heard at $540-560/mt FOB, for May shipment, edging down by $5/mt on average compared to March 1. During the given week, inventory of rebar in the Chinese domestic market has seen continuous rises amid the prevailing cautious market sentiments. “China’s stimulus policies have not been as strong as we had expected, impacting rebar market. Moreover, the raw material prices like iron ore and coke edged down too. But the weather warming up may positively affect the demand for rebar in the near future,” an international trader said.
In Singapore, the offer prices of ex-Malaysia rebar have been heard at $555/mt CFR, going down by $5/mt from the previous deal to the country at $560/mt CFR. Ex-Vietnam rebar has been available still at $560/mt CFR, but discounts are possible. Offers for ex-Middle East rebar have been heard at $560/mt CFR, theoretical weight, as well. The sufficient inventory levels in Singapore resulted in the prevailing wait-and-see stance among most buyers.
In Hong Kong, buyers have been willing to conclude purchases for rebar at $555/mt CFR, actual weight, which was $5-10/mt lower from the previous deal reported last week. According to sources, the Vietnamese mill has sold additional tonnage at this new price to Hong Kong.
Average rebar spot prices in China have lost RMB 110/mt ($15.5/mt) compared to March 1, standing at RMB 3,797/mt ($535/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 8, rebar futures at Shanghai Futures Exchange are standing at RMB 3,691/mt ($543/mt), decreasing by RMB 72/mt ($10.1/mt) or 1.9 percent since March 1, while down 0.62 percent compared to the previous trading day, March 7.
$1 = RMB 7.0978