Spot prices of seaborne rebar in Asia rose Tuesday on limited restocking by Hong Kong buyers, citing concerns over higher prices after the Lunar New Year.
S&P Global Platts assessed 16-20 mm diameter BS500 rebar at $549/mt FOB China actual weight, up $3 from Monday.
A deal for 5,000 mt of rebar for March shipment was concluded at $560/mt CFR Hong Kong actual weight Friday, a stockist who bought the cargo said. He said he would not mind buying more, as he saw the yuan's appreciation against the dollar leading to Chinese mills' unwillingness to lower offers after the Lunar New Year holidays.
The deal was $10/mt higher than the last deal sold to Hong Kong reported two weeks ago, and was equivalent to $547/mt FOB China actual weight.
Another deal was heard concluded at $555/mt CFR actual weight Monday by another local stockist. "This cargo probably didn't include 40 mm bars," a stockist said, adding that cargoes with bars ranging 10-40 mm diameter bars would be sold $5/mt higher than cargoes containing just 10-32 mm bars. A third stockist concurred, saying that the price at which the deal was done was too cheap for a 10-40 mm cargo, given the general reluctance by mills to offer now.
A Chinese trader said he was offered 10-40 mm rebar made by an eastern China mill for March shipment at $545/mt FOB China theoretical weight, but thought that buyers in Hong Kong and Singapore would only likely accept it if it were lowered to $535/mt FOB, equivalent to $552/mt FOB China actual weight.
