Posted on 12 Jul 2024
The market for imported rebar in Singapore is soft, Kallanish notes. Price volatility in Chinese steel futures has affected buying from end-users.
A leading Malaysian mill’s theoretical-weight rebar for September shipment is prevailing at around $520/tonne dap (trucked to Singapore) compared to $525/t last week. The dap Singapore basis price is $5-10/t higher than cfr Singapore basis.
Prices on the Shanghai Futures Exchange (SHFE) weakened at the start of this week. “Buyers were waiting when prices fall,” a Singapore trader notes. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $510-515/t cfr Singapore theoretical weight, down $5 on week.
A certain Chinese mill’s offer is prevailing at $520/t cfr and the mill will accept a firm bid of $515-516/t cfr, another trader says. Singapore buyers who are price-sensitive will still book Malaysian rebar which is the most price-competitive, but there are limitations. The Malaysian mill produces only standard length and not variable length rebar, he says. “The market is fluid,” he notes on the rebound of the SHFE on Thursday. Two weeks ago, a leading stockist in Singapore ordered 30,000 tonnes of Malaysian rebar for September shipment at $515/t dap Singapore.
In Hong Kong, actual-weight rebar from the above-mentioned Malaysian mill is offered at $520/t cfr and Chinese rebar at below $515/t cfr. A previous order for Malaysian rebar was struck at $525/t cfr Hong Kong last week.
Meanwhile, Philippines' SteelAsia Manufacturing Corp hosted an opening ceremony for its latest 1 million t/year rolling mill in Compostela, northern Cebu on 7 July. The mill produced its first bar in April last year, a company source tells Kallanish. "Commissioning completed early this year," he says. "Our plan is to install an EAF in the future," he says. SteelAsia's domestic rebar capacity combined from its mills situated in the country is now at 3m t/y compared to 2m t/y last year, he adds.
The mill's inauguration was pushed back to adjust to the availability of President Marcos Jr who graced the ceremony, trading sources note.
Source:Kallanish
