Posted on 05 Feb 2021
Sentiment in long product import markets remains weak in Southeast Asia, Kallanish notes. Certain suppliers are lowering export offers to the region but buyers are not keen. The approaching Lunar New Year, which is widely celebrated in the region, is also dampening sentiment.
Turkish rebar is once again competitive in Singapore. Chinese offers for theoretical-weight material are prevailing at $630-640/tonne cfr Singapore, whereas Turkish rebar is offered at $610/t cfr. The latter would be equivalent to around $570/t fob Turkey theoretical weight. Some market participants hear that Turkish rebar was booked at $625/t cfr Singapore last week.
Singapore buyers are aiming to book at $600/t cfr for March/April shipments, a Singapore trader says. But Chinese mills cannot lower rebar prices because iron ore is still too high, he adds. Chinese rebar is generally preferred over Turkish rebar because of shorter delivery times and smaller-volume bookings. Chinese actual-weight rebar offers are heard at $630/t cfr Hong Kong.
Kallanish lowered its weekly BS4449 500B 10-40mm diameter rebar price on Thursday to $605-615/t cfr Singapore theoretical weight, down $22.5/t week-on-week.
Meanwhile, the wire rod import market in Manila was stagnant during the week. Offers from China's Tangshan are prevailing at around $610/t cfr, similar to last week's $605-615/t cfr Manila. Material from the Tier I mill is being offered at around $660/t cfr. Indonesian blast furnace wire rod is offered at $610/t cfr Manila.
A Manila trader reports he has not heard of any concluded deals this week, adding that the market was quiet also for other steel products. "Buyers are waiting till after the Lunar New Year for a clearer market trend," a Vietnamese trader says.
Kallanish assessed SAE 1008 6.5mm diameter wire rod at $605-615/t cfr Manila, down $5/t on-week.
Source:Kallanish
