Posted on 03 Nov 2023
Rebar exporters to Singapore have raised their offers in tandem with the improved Chinese steel market, Kallanish notes. Buyers in Singapore are taking stock of the price increases to see if the upturn is sustainable.
A Malaysian mill’s offer for theoretical-weight rebar is prevailing at $545/tonne delivery by truck (dap), which would be equivalent to $535/t cfr Singapore. Previously, a cargo from this mill was heard to have concluded around $10-15/t lower or around $530-535/t dap early last week, some Singapore sources report. Others say that they do not hear of firm offers this week.
The deal took place before the Chinese CNY 1 trillion stimulus package, a Singapore buyer says. Freight rates have also moved up, he adds. Rebar offers from the Middle East and Vietnam are higher at $545/t cfr and $550/t cfr respectively. “Singapore importers are now wait-and-see,” he adds. They want to assess if the increased prices is a knee jerk reaction on the stimulus. The Chinese steel market has been fluctuating, a Singapore trader says. But rebar import buying has been moving around $530-540/t cfr for the last few months, he notes.
"Projects are still running but steel users are not sure about the future," another Singapore trader says. Therefore, they are buying their requirements only. Chinese rebar export offers are high now at $540/t fob, which he says "nobody will buy."
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $535/t cfr Singapore theoretical weight, up $5 on-week.
Source:Kallanish
