East Asian longs markets soar higher
Posted on 20 November 2020
East Asian long product import markets rose strongly over the past week, Kallanish notes. Buoyant Chinese domestic demand and the strong run-up in scrap are supporting the uptick and stronger market sentiment.
Wire rod prices rose by around $20/tonne for the second consecutive week in Manila. Malaysian blast furnace wire rod is now offered at $545/t cfr, and that from China at $565/t cfr.
Some, however, believe the market is stronger only because of higher-priced offers. A leading Chinese mill is already offering wire rod at $570/t fob China, says a Chinese trader. A Vietnamese trader says induction furnace Vietnamese wire rod was offered at $550/t fob Vietnam. Freight to Manila from China and Vietnam is estimated at around $25/t and $20/t respectively.
There was a 2,000-tonne booking of Chinese wire rod for January shipment at $555-560/t cfr Manila early this week, Philippine trading sources report. The buyer booked the cargo at a premium because it is from a preferred Chinese mill and is low-carbon material for fine wire-drawing, a trader says. Kallanish assessed SAE 1008 6.5mm diameter wire rod at $540-545/t cfr Manila, up $25/t on-week.
Meanwhile, rebar import markets in Singapore and Hong Kong are also surging. Offers from suppliers have similarly risen by $20/t.
In Singapore, offers for Turkish theoretical-weight rebar are heard at $505/t cfr. A recent booking of Turkish rebar was confirmed by buying sources at $485/t cfr Singapore. China-origin rebar prices have also jumped, with some mills indicating a target price for January shipment at $565/t cfr. Buyers are still bidding at under $500/t cfr, a Singapore trader says. He notes that construction activities in Singapore are close to pre-Covid-19 levels.
In Hong Kong, Turkish actual-weight rebar is offered at $515/t cfr. "For now, there are no takers," an importing source says. He thinks though that this "…may change in another two weeks when buyers need to cover [for material]." An order for Turkish rebar took place at around $495/t cfr Hong Kong some ten days ago.
Kallanish raised its weekly BS4449 500B 10-40mm diameter rebar price to $495-500/t cfr Singapore theoretical weight, up $25 on-week.Source : Kallanish