Chinese suppliers boost longs exports to Southeast Asia

Posted on 14 February 2020
 

Source: Kallanish

Market uncertainties arising from the Covid-19 virus outbreak continue to weigh on demand for long products in Southeast Asia, Kallanish notes. The region is, however, seeing lower Chinese export prices as Chinese mills switch their focus to export sales.

In Singapore, a cargo for Chinese 10-40mm diameter rebar for end-March shipment closed at $445/tonne cfr Singapore, theoretical-weight basis. A Singapore trader rationalises that certain Chinese suppliers are turning to export markets for the time being amid curtailed domestic demand due to the virus. 

Turkish rebar was offered last week at $440/t cfr Singapore theoretical weight. Today’s Turkish price level is unclear, however, following the recent uptick in Turkish scrap.

In Hong Kong, 30,000t of 10-40mm diameter rebar from China for end-March shipment concluded recently at $448-450/t cfr actual weight. This would net back to around $445/t cfr Singapore theoretical-weight basis. On Thursday, a Hong Kong trader reported hearing a lower-priced offer from China at $440/t cfr actual-weight basis.

On Thursday, Kallanish reduced its weekly BS4449 500B 10-40mm diameter rebar price to $445/t cfr Singapore theoretical weight, $7.5 lower on-week.

Mesh-grade 6.5mm diameter non-alloy wire rod from a certain mill in Hubei is offered at $465/t cfr Manila, trading sources said on Thursday. Last week, several orders for end-March shipment concluded at $465-470/t cfr Manila, a Chinese trader reports. The Chinese mill has recently returned to the regional export market because domestic demand in China is slow, he says. It had focused on the strong Chinese domestic market for nearly a year.

A Manila trader hears some traders were seeking bids for non-alloy added wire rod from Tangshan at $460/t cfr. “Many customers are still reluctant as they are bearish,” he says.

Other offers are higher. Two large Chinese mills are offering alloy-added wire rod at $480/t cfr Manila. Malaysian wire rod is currently offered at $480/t cfr Manila and $485/t cfr South Korea.

Kallanish lowered its SAE 1008 6.5mm diameter mesh-grade wire rod assessment to $460-465/t cfr Southeast Asia, down $5 on-week 



«  Back

Copyright © 2016 SEASI Site. All Rights Reserved.