Posted on 04 Apr 2025
ASEAN markets for imported rebar and wire rod are quiet this week as uncertainty over US trade tariffs is dampening buying interest, Kallanish notes. News of a planned official clampdown to stem the export of VAT-evading Chinese steel has caused Chinese wire rod prices to rise.
In Hong Kong, actual-weight rebar offers are softening on the weakness of the RMB, some importing sources say. A bid for actual weight rebar at $475-480/tonne cfr could find a taker, a Hong Kong rebar importer says. But he and other traders say the most buyers are willing to pay is $470/t cfr Hong Kong.
A leading Malaysian blast furnace mill’s theoretical-weight rebar for May delivery is believed to be offered at $490/t dap (trucked to) Singapore, unchanged from last week. The dap Singapore basis price is estimated to be $5-10/t higher than on a cfr Singapore basis.
Chinese rebar offers are prevailing at $485-490/t cfr Singapore. “There are no deals this week. All are waiting to see the outcome of the US tariffs,” a Singapore trader says. Attaining clarity on this could take some months, he adds.
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $480-485/t cfr Singapore theoretical weight, up $5/t week-on-week.
Meanwhile, an announcement that there will be a new crackdown on the export of VAT-evading Chinese steel exports has triggered increased offer prices in the region.
Offers have jumped to around $490/t cfr Manila for mesh-grade 6.5mm and up diameter Chinese Q195 grade wire rod for May shipment. This compares with $470-475/t offers last week. "I doubt if there are any bookings this week," a Manila trader notes. Small-tonnage bookings previously took place at $460-465/t cfr Manila. Kallanish assessed SAE 1008 6.5mm-diameter wire rod at $470/t cfr Manila, up $5 on-week.
In Vietnam, 6.5mm/8mm diameter Chinese wire rod offers for shipment by end-June have risen to $480/t cfr Ho Chi Minh City, up from offers at as low as $458/t cfr last week. These low-priced Chinese wire rod quotes to Vietnam and the Philippines are long-believed to be cargoes which suppliers plan to ship without full payment of Chinese VAT.
Source:Kallanish
