Posted on 20 Nov 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
