During the given week, ex-China rebar offer prices have edged down further compared to the previous week, reflecting weak conditions in the local market, where spot prices declined by $7/mt. Also, the major Malaysian rebar suppliers has cut its offers, seeing subdued demand in the region and negative outlook for the coming weeks.
Ex-China rebar offer prices have been heard at $525-535/mt FOB, August shipment, edging down by $5/mt on average compared to June 14.
During the given week, heavy rains in some regions of China exerted negative impact on the construction activities, which slackened the demand for rebar. Meanwhile, the cautious sentiments prevailed among market players. On June 21, Chinese major steelmaker Shagang Group announced to cut its rebar prices by RMB 100/mt ($14/mt) for delivery in late June, negatively affecting market sentiments. It is expected that rebar prices in the Chinese domestic market will likely see a decreasing trend in the coming week.
Offer prices of ex-Malaysia rebar to Singapore have been heard at $530/mt DAP, theoretical weight, down $5/mt week on week. This level translates to $520-525/mt on CFR basis.
At the same time, ex-Malaysia rebar to Hong Kong have been available at $535/mt CFR, actual weight, also $5/mt lower than last week.
Average rebar spot prices in China have lost RMB 53/mt ($7.4/mt) compared to June 14, standing at RMB 3,617/mt ($508/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 21, rebar futures at Shanghai Futures Exchange are standing at RMB 3,563/mt ($500/mt), decreasing by RMB 74/mt ($10.4/mt) or 2.03 percent since June 14, while down 1.19 percent compared to the previous trading day, June 20.
$1 = RMB 7.1196