During the given week, ex-China rebar offer prices have moved on an upward trend, supporting ex-ASEAN offers further. The tradable prices in Southeast Asia’s import market have increased accordingly.
Ex-China rebar offer prices from smaller mills have been heard at $540-555/mt FOB for January shipment, moving up by $7.5/mt on average compared to November 17.
During the given week, rebar prices in the Chinese domestic market have seen rises amid increasing coke prices and rising rebar futures prices, while import iron ore prices have also been at high levels, bolstering rebar prices from the cost side. “The relevant government departments’ recommendation for the curbing of speculation in iron ore trading activities may cool down the continuous rises in iron ore prices and weaken the support for rebar prices in the near future,” an international trader said.
Offer prices of ex-Malaysia rebar have been heard at up to $560/mt DAP, which translates to around $550/mt CFR Singapore, theoretical weight, increasing by another $5-10/mt. The new tradable prices for rebar have been heard at $545-550/mt CFR, theoretical weight, indicating a rising trend from $540-545/mt CFR last week. Malaysian origin rebar is still among the most competitive, with ex-Middle East offers at near $565-570/mt CFR.
An additional tonnage of ex-Malaysia rebar has been sold at $555/mt CFR Hong Kong, actual weight, slightly above $550-555/mt CFR in a contract a week before, as bullish sentiments have prevailed among market players, and so they have been willing to consider higher prices.
Average rebar spot prices in China have gained RMB 3/mt ($0.42/mt) compared to November 17, standing at RMB 4,050/mt ($569/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 24, rebar futures at the Shanghai Future Exchange are standing at RMB 3,976/mt ($559/mt), increasing by RMB 47/mt ($6.6/mt) or 1.2 percent since November 17.
$1 = RMB 7.1151