Ex-China rebar offer prices have indicated a downward trend compared to the previous week, following negative movements domestically amid weak demand and the switch to the new rebar standard. The main Malaysian supplier has also followed the downward trend and lower deal prices have already been seen in the market.
Ex-China rebar offer prices from large mills have been heard at $485-500/mt FOB for September shipment, decreasing by $12.5/mt on average compared to July 19.
During the given week, rebar prices in the Chinese domestic market have moved down significantly amid decreasing rebar futures prices against the backdrop of the new rebar standard to be implemented in September, which has exerted a negative impact on market sentiments. Market players think inventories cannot be consumed in such a short period and some of them have attempted to ask for a delay in the implementation of the new standard. Demand for rebar is unlikely to see a big improvement in the traditional off-season. However, some steel mills will curb their production activities in the near future, which may bolster rebar prices to a certain degree. It is thought that rebar prices in the Chinese domestic market will likely edge down further in the coming week, but at a slower pace.
Offer prices of ex-Malaysia rebar have dropped to $505-510/mt DAP Singapore, theoretical weight, versus $515/mt DAP last week. This price translates to $500-505/mt on CFR basis. A deal has been rumored in the abovementioned range.
Demand for rebar in the Hong Kong market has been slack, weakening the support for offer prices. Ex-Malaysia rebar has softened by $10/mt over the past week to $505/mt CFR Hong Kong, actual weight.
Average rebar spot prices in China have lost RMB 143/mt ($20.0/mt) compared to July 19, standing at RMB 3,370/mt ($473/mt) ex-warehouse, according to SteelOrbis’ information.
As of July 26, rebar futures at Shanghai Futures Exchange are standing at RMB 3,371/mt ($473/mt), decreasing by RMB 108/mt ($15/mt) or 3.1 percent since July 19, while up 0.66 percent compared to the previous trading day, July 25.
$1 = RMB 7.127