Posted on 03 Jan 2025
Import markets for rebar and wire rod in ASEAN remained sluggish on Thursday, Kallanish notes. Some buyers are not yet back from the year-end holiday and traders anticipate trading activity to return by next week.
Rebar import prices are soft in Singapore. Traders are shorting the market with theoretical-weight offers at as low as $480/tonne cfr, market sources observe. These offers are for shipment by July.
A leading Malaysian blast furnace mill’s theoretical-weight rebar is heard at around $485-490/t dap (trucked to) Singapore compared to $500/t dap two weeks ago. The dap Singapore basis price is estimated to be $5-10/t higher than on a cfr Singapore basis. In Hong Kong, actual-weight rebar from China and Malaysia is offered at around $490-495/t cfr, down $10 from two weeks ago.
A South Korean mill has entered the Singapore market after gaining CARES certification last year. At the start of this week, it started offering theoretical-weight rebar at $485/t cfr Singapore for February/March shipment.
There could be more South Korean rebar and long steel exports to ASEAN this year. "The main reason is the Korean construction market has been weak for the last three quarters," a Seoul-based trader says.
“The Korean domestic prices are very low,” a Chinese trader notes. He is unable to sell any Chinese rebar to Korea. While the poor domestic Korean market could spur more exports, they would be on a spot basis, a Singapore trader says. The weak Korean won, due to the country’s ongoing political crisis, is advantageous for exporters too, trading sources observe.
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $480/t cfr Singapore theoretical weight, down $2.5 week-on-week.
Similarly, the ASEAN wire rod import market has softened. Offers for mesh-grade 6.5mm and up diameter Chinese Q195 grade wire rod for February shipment are at around $470/t cfr Manila compared to $480-485/t two weeks ago. Bookings have yet to transpire, traders say.
“It is the first working day and also, many customers will only be back by Monday,” a Manila trader said on Thursday. These low-priced quotes are believed to be Chinese exports which may evade full payment of VAT.
Kallanish assesses SAE 1008 6.5mm-diameter wire rod at $465/t cfr Manila, down $2.5/t on-week.
Similar grade and size wire rod from China is offered at $485/t cif Thailand, a Bangkok trader notes. Another suggests that the Thai market is still quiet because trading activity will only resume next week.
Source:Kallanish
