Posted on 03 May 2024
The ASEAN import markets for longs were quiet this week, Kallanish notes. Buying interest is thin amid higher offers and the Chinese absence from the market. “It is very quiet this week,” a Singapore trader says. “I don’t see anything happening,” he says.
Firm offers continued on the back of the continued threat of Beijing's crackdown on Chinese wire rod shipped without full payment of VAT. Offers in the Philippines for June-shipment Chinese wire rod which are VAT-compliant were at $550-555/t cfr early this week. There are no deals heard. “Prices have climbed too rapidly due to the reported crackdown on non-VAT exports,” a Manila trader says. Deals for non-VAT wire rod from China transpired at $505/t cfr during the week through 8 April.
Kallanish assesses SAE 1008 6.5mm-diameter wire rod at $525/t cfr Manila, unchanged on-week.
In Vietnam, bids are being invited for 6.5mm upwards SAE 1008 wire rod from several Chinese mills for May/June shipment at $530/t cfr Vietnam on Thursday. An offer for similar wire rod from the same mills last week was $535/t cfr. These offers are subject to confirmation. “Prices seem to be softening,” a trader in Ho Chi Minh city says Thursday. She is unsure if they are for non-VAT material but adds: “Demand is still low.”
Regional mills started pushing for higher wire rod prices since last week. A leading Indonesian mill’s wire rod offer for June shipment is at $540/t fob and a Vietnamese mill’s offer for July is pegged at $535/t fob. Chinese wire rod offers were at $540/t fob on Tuesday before the holiday, a regional trader says.
In Thailand, there are hardly any trades as local wire rod prices are now more competitive than imports. Domestic wire rod is prevailing at THB 20,500-21,000/t ($555-568/t) ex-works. Regional wire rod offers are at $545-555/t cfr Thailand.
Meanwhile, a Malaysian mill is aiming to export theoretical-weight rebar for June shipment at $550/tonne trucked to Singapore, equivalent to $540-545/t cfr Singapore. However, trading and importing sources say that the mill is still offering directly at around $535/t delivered. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $525/t cfr Singapore theoretical weight, up $2.5 week-on-week.
The mill’s offer for actual weight rebar is still at $545/t cfr Hong Kong, importing sources say. “There is not much buying interest,” a buyer says.
Source:Kallanish
