Asian rebar prices jumped Friday as most traders resumed offering at higher levels amid limited cheap resources. The price gap between bids and offers also narrowed on higher buying indications seen.
S&P Global Platts assessed 16-20 mm diameter BS500 rebar at $451/mt FOB China actual weight Friday, up $5/mt on the day.
The regional market in Singapore rose on higher offers and buying indications, but Hong Kong remained quiet.
In Singapore, mainstream offers were received at $475/mt CFR Singapore theoretical weight for March shipment Turkish 10-40 mm, two buyers said. This is up $5-$10/mt from before the new year holidays. An indicative offer for Chinese rebar was received at $480-$485/mt CFR Singapore, one buyer said.
Due to mill maintenance, no offers of Qatari rebar were received, several buyers said. No offers for other origin materials were placed either due to higher domestic prices or selling opportunities in nearby markets, said a fabricator.
Prices were negotiable at around $465-$470/mt CFR Singapore for various quantities, two buyers said. This was equivalent to $462-$469/mt FOB China actual weight, assuming freight of $20/mt and 3% weight tolerance after normalization of quantity.
Some buyers could wait till after the Lunar New Year holidays as they had enough stock, while some were likely to buy before the holidays. As a result, buying indications rose to over $455/mt CFR, up $5-$10/mt.
In Hong Kong, offers were received for Chinese rebar and open origin at $475/mt CFR actual weight unchanged, a stockist said, with buying indications seen at $460/mt. The offer was equivalent to $461/mt FOB China actual weight, assuming freight of $14/mt.
In the Beijing retail market, spot 18-25 mm diameter HRB400 rebar was assessed at Yuan 3,700/mt ($531/mt) ex-stock actual weight, including 13% value added tax, up Yuan 10/mt on the day.
The most actively traded May 2020 rebar contract on the Shanghai Futures Exchange closed at Yuan 3,543/mt, down Yuan 4/mt or 0.1% on the day.
Platts assessed 16-32 mm diameter BS4449 Grade 500 rebar at $457.5/mt CFR Southeast Asia, up $7.5/mt on the day.
-- Analyst Joy Zhuo
