Posted on 23 Oct 2020
The regional rebar market has inched up in Southeast Asia. A Turkish rebar cargo was booked in Singapore mostly to cover for a forward contract done earlier this year.
A 50,000-tonne Turkish January-shipment rebar cargo was booked at around $465/tonne cfr Singapore, theoretical-weight, last week. The buyer for around 30,000t of the cargo needs to fulfil a future-delivery contract which was signed earlier, possibly in March or April, trading sources report. Most Singapore importers have sufficient stocks and will return to purchase February shipments, a Singapore trader says. But they will book if there is cheap rebar available in the market. He believes they are waiting for prices to slide by $30/t.
Chinese traders are now offering 10-32mm rebar, of unspecified origin, for February shipment at $475/t cfr Singapore. In Hong Kong, two cargoes of Turkish rebar, totalling more than 100,000t were booked around ten days ago at $472/t cfr, actual-weight basis. A Hong Kong importer believes the bookings were made by traders to similarly cover for forward contracts. Turkish rebar offers have now risen to $487/t cfr Hong Kong, actual weight basis, he adds.
Chinese rebar offers in Singapore are priced at similar levels, at $500-510/t cfr. Chinese suppliers are officially offering at $510/t cfr but can accept $500/t, a Singapore trader says. The strong CNY is still keeping export prices high, he adds. Kallanish lifted its weekly BS4449 500B 10-40mm diameter rebar price at $465/t cfr Singapore theoretical weight, up $5 on week.
Meanwhile, the wire rod market held steady in the Philippines over the past week. Offers for December shipments of blast furnace SAE 1008 6.5mm diameter wire rod from Indonesia are prevailing at around $505/t cfr Manila. Bookings took place last week at $500/t cfr Manila. Chinese wire rod offers are prevailing at $525/t cfr.
Some traders are bidding at $5/t below offer prices, a Manila trader says. He says the market is slower than the past two months. Another says the Philippine market is "…a bit flooded with wire rod" after the spate of bookings in July-September.
Kallanish assessed SAE 1008 6.5mm diameter wire rod at $500/t cfr Manila, unchanged on-week.
Source:Kallanish
