During the given week, ex-China rebar offer prices have edged up compared to the previous week amid slightly better sentiments in the local market, but ASEAN mills have kept their offers for rebar stable, seeing still weak demand and the lack of strong fundamentals.
Ex-China rebar offer prices have been heard at $475-485/mt FOB, for November shipment, increasing by $5/mt on average compared to September 13.
During the given week, rebar prices in the Chinese domestic market have seen slight rises amid the better demand from downstream users. The US has announced an interest rate cut of 50 basis points, stimulating market sentiments. Moreover, downstream users may build up some stocks ahead of the National Day holiday (October 1-7), which will positively affect rebar prices in the near future. At the same time, raw material prices have rebounded, also bolstering rebar prices from the cost side. It is expected that rebar prices in the Chinese domestic market will indicate a rebounding trend in the coming week.
Currently, buyers’ price ideas in both Singapore and Hong Kong have been heard at $475-480/mt CFR Southeast Asia, so Chinese rebar has not been in demand given that ex-China offers are at the same levels but on FOB basis.
Offer prices of ex-Malaysia rebar have been heard at $495/mt DAP Singapore, theoretical weight, moving sideways on average week on week, translating to $485-490/mt on CFR basis.
Average rebar spot prices in China have gained RMB 13/mt ($1.8/mt) compared to September 13, standing at RMB 3,340/mt ($473/mt) ex-warehouse, according to SteelOrbis’ information.
As of September 20, rebar futures at Shanghai Futures Exchange are standing at RMB 3,165/mt ($448/mt), decreasing by RMB 25/mt ($3.5/mt) or 0.78 percent since September 13, while down 0.28 percent compared to the previous trading day, September 19.
$1 = RMB 7.0644