During the given week, ex-China rebar offer prices have moved on a downward trend compared to the previous week due to the sharp fall in futures prices after the weaker-than-expected stimulus measures for the real estate sector and weak economic data. As a result, Southeast Asia’s import market is depressed too, but ex-Malaysia rebars are still the most competitive in terms of price.
Ex-China rebar offer prices have been heard at $510-530/mt FOB, for December shipment, decreasing by $15/mt on average compared to October 11. During the given week, rebar futures prices have seen continuous decreases, exerting a negative impact on prices in the Chinese domestic market. Inventory of rebar held by traders increased after the long holiday, weakening the support for prices. Lately, production of rebar has increased, negatively affecting prices. It is thought that rebar prices in the Chinese domestic market will see a further downward correction in the coming week, according to market sources.
The Chinese domestic market has been better than the export market, and so major Chinese steelmakers have not been inclined to lower their offer prices too much to close deals. In the given week, the offer prices of ex-China BS500B 20-40 mm rebar have been heard at $550-560/mt CFR, Southeast Asia, with the lower end for Singapore on theoretical weight basis, and the higher end for Hong Kong.
In the Singapore market, the import offer prices of ex-Malaysia rebar have been heard at $530-535/mt CFR, theoretical weight with small volume deal rumored at this level.
In the Hong Kong market, offers of ex-Malaysia rebar have been heard at $540-550/mt CFR, actual weight.
As of October 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,336/mt ($478/mt), decreasing by RMB 132/mt ($18.5/mt) or 3.8 percent since October 11, while down 1.85 percent compared to the previous trading day, October 17.
$1 = RMB 7.1274