During the past week, ex-China and ex-ASEAN rebar offer prices have moved sideways, but the recent bearish mood has been reversed after the news about expected support for the Chinese real estate sector and rising futures prices.
Ex-China rebar offer prices have been heard at $540-560/mt FOB, for July delivery, remaining stable on average compared to May 10. During the given week, rebar prices in the Chinese domestic market moved down first while edging up later amid declining inventory and slightly improved demand, while China’s Ministry of Finance has announced that China will issue ultra-long special sovereign bonds in 2024, aiming to support the real economy, exerting a positive impact on market sentiments. Also, on May 17, People’s Bank of China (PBoC) issued three announcements, planning to reduce mortgage rates for both provident fund loans and commercial loans, while also cutting the downpayments for mortgage, aiming to boost the sluggish real estate market, which will positively affect the demand for steel and bolster steel prices in the near future, according to market sources.
Offer prices of ex-Malaysia rebar have been heard at $535/mt DAP Singapore, theoretical weight, remaining stable over the past week, which translates to $530/mt CFR or just slightly below. Other origins, including Chinese, have been much more expensive with offers starting from $540-545/mt CFR Singapore and higher.
Currently, the performance of the real estate industry in Hong Kong has been poor and rather high inventory levels have negatively affected the demand for rebar. Offer prices of ex-Southeast Asia rebar have been heard at $540/mt CFR Hong Kong, actual weight, down by $10/mt over the past week.
Average rebar spot prices in China have gained RMB 40/mt ($5.6/mt) compared to May 10, standing at RMB 3,767/mt ($531/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 17, rebar futures at Shanghai Futures Exchange are standing at RMB 3,716/mt ($523/mt), increasing by RMB 54/mt ($7.6/mt) or 1.5 percent since May 10, while up 1.34 percent compared to the previous trading day, May 16.
$1 = RMB 7.1045