Rises in ex-China rebar prices push up ex-ASEAN offers

Friday, 19 April 2024 16:05:22 (GMT+3)   |   Shanghai
       

During the given week, ex-China rebar offer prices have moved up compared to the previous week amid increasing futures prices and improved demand locally. This has bolstered ex-ASEAN rebar prices, and, even though some buyers in Asia are still bidding at lower levels, the gradual uptrend will persist in the market, and so further price rises are awaited in new deals.

Ex-China rebar offer prices have been heard at $540-560/mt FOB, for May shipment, moving up by 15/mt on average compared to April 12. During the given week, demand for rebar in the local market improved and prices increased even though blast furnaces in northern China started to resume production, which resulted in increasing outputs. Import iron ore prices have moved up, providing solid support for rebar prices from the cost side. Rebar prices in the Chinese domestic market will likely edge up further in the coming week amid the anticipated improvement in demand.

Offer prices of ex-Vietnam rebar have been heard at $540/mt FOB, increasing by $10/mt over the past week, while sentiments have improved among market players in Southeast Asia. The expected price gap between sellers and buyers has narrowed.

Offer prices for ex-Malaysia rebar to Singapore have increased by $10/mt over the past week to $530/mt DAP Singapore on theoretical weight basis, translating to around $525/mt CFR and buyers are looking for $515-520/mt CFR, also increasing their bids from the lowest level of $510/mt CFR seen last week.

A deal for ex-Malaysia rebar has been heard at $530/mt CFR Hong Kong, on actual weigh basis, for delivery in May.

Average rebar spot prices in China have gained RMB 103/mt ($14.5/mt) compared to April 12, standing at RMB 3,763/mt ($530/mt) ex-warehouse, according to SteelOrbis’ information.

As of April 19, rebar futures at Shanghai Futures Exchange are standing at RMB 3,675/mt ($518/mt), increasing by RMB 47/mt ($6.6/mt) or 1.3 percent since April 12, while down 0.3 percent compared to the previous trading day, April 18.

$1 = RMB 7.1046


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