Posted on 13 Mar 2024
The East Asian rebar import market weakened sharply this week, Kallanish notes. The sharp drop in iron ore prices appears a main contributing factor behind the price fall.
A Malaysian mill’s direct offer for theoretical-weight rebar for April delivery has fallen to $545/tonne trucked to Singapore, for orders of minimum 10,000 tonnes. Its offer was at $555/t last week. The $545/t offer would be equivalent to around $540/t cfr Singapore. The current Malaysian rebar offer is still open for negotiation, Kallanish is told.
Mills are now inviting buyers to bid instead of giving out offers, a buyer says. The market is weak and publicising lower prices will not improve market sentiment. The lack of support from falling raw material prices is the main reason for the market slide, he says.
In Hong Kong, offers for actual-weight rebar from the same Malaysian mill have also fallen to around $545-550/t cfr. Sales are taking place in Hong Kong for Chinese actual-weight rebar at $545/t cfr for base sizes of 16mm diameter material, a trader reports. The Chinese rebar would be offered equivalent $545/t cfr Singapore theoretical-weight basis. However, this will not be able to compete with the Malaysian mill’s trucked offer at $545/t delivered, he adds.
Prices fell this week on the back of weak iron ore and poor Chinese domestic steel demand, the trader says. “There is no clear direct policy to support China’s property market,” he notes. The market was hoping that the Chinese authorities would announce measures to boost Chinese steel demand after the recent National People’s Congress meeting but this did not materialise.
Source:Kallanish
