Posted on 26 May 2023
Import markets in ASEAN for rebar and wire rod are sluggish amid falling Chinese steel futures and regional market bearishness, Kallanish notes. Buyers are steering clear amid the current bearish conditions.
Singapore buyers are in no hurry to place orders because they are expecting arrivals of incoming rebar cargoes. "They [Singapore buyers] have enough stocks and they think that prices are coming down," a Singapore trader says. Suppliers are also finding it difficult because "there are no markets to sell to”, he adds.
A Malaysian mill’s offer for theoretical-weight rebar is currently at around $560/tonne delivered by truck to Singapore, down from $575-580/t last week. This is equivalent to around $550/t cfr Singapore. Offers for Middle Eastern rebar are heard at around $560/t cfr, the same level as a Singapore booking last week of United Arab Emirates-origin rebar.
Market sentiment is negative, the trader says. It is widely expected that a leading Chinese mill will lower its export price to $550/t fob China from the current $560/t fob. Another trader says there is not much market activity. “Prices are just softening,” he opines.
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $550-555/t cfr Singapore theoretical weight, down $10 on-week.
Meanwhile, the regional wire rod import market has weakened despite seeing some price stability last week. Offers for residual amounts of Chinese-origin 6.5mm diameter wire rod for July shipment have slipped to as low as $525/t cfr Manila, while other quotes for regular tonnages are at around $540/t cfr Manila.
Traders say they are not hearing of deals. “I seriously doubt any customer would buy under current conditions,” a Manila trader observes. Kallanish assessed SAE 1008 6.5mm diameter wire rod at $535-540/t cfr Manila, down $10 on-week.
July-shipment blast furnace 6.5mm diameter wire rod from Indonesia is meanwhile offered this week at $550/t cif Thailand, down from $560-565/t cif last week.
Source:Kallanish
