During the given week, ex-China rebar offer prices have moved down compared to the previous week, amid the worsening mood in Asia in general, so ASEAN mills have followed. Also, low-priced Chinese wire rod deals have emerged in Southeastern Asia.
Ex-China rebar offer prices from large mills have been heard at $515-525/mt FOB, for August shipment, decreasing by $10/mt on average compared to June 21. During the given week, rebar prices in the Chinese domestic market have seen declines amid the sluggish demand due to the heavy rainfalls and high temperatures. Most buyers have only concluded purchases as needed, exerting a negative impact on rebar prices. It is thought that rebar prices in the Chinese domestic market will likely edge down in the coming week, especially if iron ore prices move down further.
Also, a deal for ex-China wire rod from a trader, who offers non-VAT material, has been done at $510/mt CFR Manila, down by $5-10/mt CFR from the latest tradable level.
Offer prices of ex-Malaysia rebar have been heard at $520-525/mt DAP, theoretical weight, Singapore, down $7.5/mt week on week. This price translates to $515/mt on CFR basis. Deals are expected in the near future, though overall demand is still slow. Import prices of ASEAN rebar have been heard at $520-525/mt CFR Hong Kong, actual weight, while no deals have been heard lately either.
Average rebar spot prices in China have lost RMB 47/mt ($6.6/mt) compared to June 21, standing at RMB 3,570/mt ($501/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 27, rebar futures at Shanghai Futures Exchange are standing at RMB 3,544/mt ($497/mt), decreasing by RMB 19/mt ($2.7/mt) or 0.5 percent since June 21, while down 0.2 percent compared to the previous trading day, June 26.
$1 = RMB 7.1268