A Malaysian producer's direct offer of theoretical weight rebar for April delivery has fallen as low as $545 per tonne for minimum orders of 10,000 tonnes to Singapore. The offer, which was at $555/ton last week, showed a significant decrease this week.
Malaysian producer's actual weight rebar offers in Hong Kong also decreased to approximately $545-550/ton cfr. According to a trader, Chinese real weight rebar sales in Hong Kong are at $545/t cfr for basic sizes. However, it is emphasized that this offer cannot compete with the Malaysian facility's offer of $545/ton delivered.
A buyer stated that factories are now waiting for offers from buyers instead of making offers. However, it is stated that the market is weak and lower prices do not increase market sentiment. The lack of support from falling raw material prices is shown as the main reason for the decline in the market.
Traders say prices have fallen this week due to weak iron ore and a decline in Chinese domestic steel demand. The lack of clear policy statements to support China's real estate market increases uncertainty in the market.
The market was hoping that Chinese authorities would announce measures to increase steel demand, but this expectation was not met.
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