Posted on 28 Jul 2023
Suppliers have hiked rebar export offers to Singapore and Hong Kong after the surge in the Chinese steel market, Kallanish understands.
Traders say offer prices have gone up $5/tonne from last week. Theoretical-weight rebar from Malaysia is now offered at $555/t delivered by truck (dap) to Singapore, a Chinese trader says. But a Singapore trader hears the offer from the Malaysian mill is still at $550/t dap Singapore, and adds that Middle Eastern rebar is currently offered at $555/t cfr Singapore. He hears of a deal for rebar from the Malaysian mill at $545-550/t dap before the rise in prices. This is equivalent to around $535-540/t cfr Singapore.
Several factors drove offer prices higher, including the prospect of imminent production cuts at major Chinese steel mills. Also contributing were the official announcement that fiscal and property measures will be implemented to boost the Chinese domestic economy, and hikes in coke prices due to supply constraints. "Everybody is bullish compared to the last two weeks. But, fundamentally, it [demand] is still not good," another Singapore trader says.
In Hong Kong, certain traders are offering actual-weight rebar from open origins at $568/t cfr and for Chinese-origin rebar at $585/t cfr, importing sources say. Qatar-origin theoretical-weight rebar was booked at $545/t cfr Singapore in mid-July. Actual-weight rebar from Qatar is also heard to have been booked at $550-557/t cfr Hong Kong during the second week of July.
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $540-545/t cfr Singapore theoretical weight, up $2.5 on-week.
Source:Kallanish
