Importers book rebar in Southeast Asia

Posted on 20 March 2020
 

Source: Kallanish

Rebar trading in Southeast Asia this week has been more active than for wire rod, Kallanish notes. Measures to contain the Covid-19 pandemic have muted regional buying sentiment, especially in Manila where a lockdown is enforced until 13 April.

In Singapore, a trader recently sold Chinese rebar for May shipment to several buyers at $435-443/tonne cfr Singapore theoretical weight, trading sources report. I suspect it was for 10-32mm diameter material, says a trader who deems the transaction price too low. The Chinese are generally offering 10-40mm diameter rebar at $445-450/t cfr, so the deal could have been the disposal of a traders position cargo, he adds.

A regional importer says he was also approached by the trader. China has lots of inventory to offload. Although people are already back to work, logistics are still pretty bad, he observes.

Two 50,000t May-shipment cargoes of rebar from two Turkish mills were concluded this week. One sold at $445/t cfr Singapore theoretical weight and the other at around $460/t cfr Hong Kong actual weight. The latter cargo translates to $425-427/t fob actual weight, trading sources say.

A trader booked the Turkish rebar at around $460/t cfr to cover a forward contract, Hong Kong sources says. The trader involved is reported to have done the order to replace a pending contract which was cancelled by a Middle Eastern mill, but this could not be confirmed before deadline.

Russian rebar is offered at $445/t cfr Hong Kong actual weight. A trader hears that 10,000t was booked last Friday but another source says he is unsure of any conclusion.

On Thursday, Kallanish lowered its weekly BS4449 500B 10-40mm diameter rebar price to $440-445/t cfr Singapore theoretical weight, down $2.5 on-week.

Meanwhile, the wire rod import market was silent in Manila. Chinese 6.5mm diameter wire rod is offered at $465-470/t cfr, Chinese trading sources say. "Most buyers are focused on the virus, food and healthcare, and not on steel, a Chinese trader says. Malaysian wire rod, offered last week at $460/t cfr Manila, is unavailable this week. Malaysia is currently in a two-week lockdown.

Kallanish maintained its SAE 1008 6.5mm diameter mesh-grade wire rod assessment at $460/t cfr Manila.



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