During the given week, ex-China and ex-ASEAN rebar offer prices have remained stable and rare deals done at the previous levels, though the market has been mainly inactive ahead of holidays.
Ex-China rebar offer prices have been heard at $560-580/mt FOB, February delivery, remaining stable on average compared to December 15. Heavy snow in northern China and extremely cold weather in eastern China exerted a negative impact on the demand for rebar and weakened the support to its prices, while the firm raw material prices bolstered rebar prices from cost side. Some steelmakers halted production on more blast furnaces, resulting in relatively low-level inventory of rebar, providing certain support to its prices. “Traders are expected to build up stocks for winter season in the near future, which will positively affect rebar prices,” an international trader said.
Offer prices of ex-Malaysia rebar have been heard at $570/mt DAP, theoretical weight, Singapore and one deal has been reported at $565/mt DAP, translating to around $560/mt on CFR basis, which is in line with the workable level last week.
Meanwhile, offer prices of ex-Vietnam rebar have been heard at $575/mt CFR Singapore, theoretical weight, delivery in February. Since the demand and supply of rebar improved in the Vietnamese local market, it is thought ex-Vietnam rebar prices may see rises in the coming period.
Offer prices of ex-China rebar have been heard at $580-590/mt CFR Singapore, theoretical weight.
Ex-Malaysia rebar has been also available at $570-572 CFR Hong Kong, actual basis.
Average rebar spot prices in China have gained RMB 10/mt ($1.4/mt) compared to December 15, standing at RMB 4,030/mt ($568/mt) ex-warehouse, according to SteelOrbis’ information.
As of December 22, rebar futures at the Shanghai Future Exchange are standing at RMB 4,004/mt ($564/mt), increasing by RMB 89/mt ($12.5/mt) or 2.3 percent since December 15.
$1 = RMB 7.0957