Posted on 07 Jun 2024
The rebar market in Singapore has slipped in tandem with a softening in China’s futures and physical markets earlier this week, Kallanish notes.
Theoretical-weight rebar for July shipment from a leading Malaysian exporting mill is offered this week at $535/tonne dap or trucked to Singapore. This is equivalent to $525-530/t cfr Singapore. These prices are for 10,000-tonne cargoes. This week’s offer is $5/t lower on-week.
“Prices came down this week. But buyers’ price idea is only at $525/t delivered,” a Singapore trader says. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $520-525/t cfr Singapore theoretical weight, down $2.5 on-week.
Market sources report hearing this week of past orders of rebar from Qatar. A bulk vessel cargo for actual-weight rebar was booked last week at $540-545/t cfr Hong Kong. Three weeks ago, another similar cargo, but on theoretical-weight basis, was sold at $540/t cfr Singapore. The cargoes are for 50,000t each.
The cfr price to Singapore is on liner-out basis which may explain why the spread between theoretical and actual-weight prices is narrowed, several Singapore importing sources say.
Market sources speculate on the possible reasons why the deal took place, given the higher prices compared to Malaysian theoretical-weight rebar, which was at the equivalent of $525-530/t cfr at that time. “It could be a tactical move because the buyer may want to ensure the security of supply from a different source,” a Singapore trader notes. This could also provide the buyer with more bargaining power.
The buyer may have its own reasons which are unknown to the market, another says. However, taking a large-vessel cargo may carry the risk of incurring more costs, if there are delays in off-loading, compared to trucked cargoes, he notes.
Source:Kallanish
