Posted on 22 Apr 2022
The East Asian long product import markets are softening. Offer prices are falling, especially for wire rod imports, Kallanish notes. At the same time, more competitive offers of Chinese longs are surfacing in the region. This could be due to the widespread Covid lockdowns in China and the weakness of the CNY against the dollar.
Most offers for 6.5mm diameter blast furnace wire rod from within Southeast Asia have dipped by $10/tonne compared to last week to $835/tonne cfr Manila. There are several offers as low a $825/t cfr heard in the market which are likely for short-selling positions, trading sources say.
Despite the lower prices, buying interest is thin with no recent deals heard concluded this week. Chinese wire rod offers are now back in the Philippines. An offer for 1,000t of Q195 grade wire rod from China is currently available at $828/t cfr Manila. It is the remainder of a May-shipment cargo, of which 5,000t was booked at $845/t cfr Manila on 11-12 April.
Chinese-origin rebar-grade wire rod export offers, such as Q235 grade wire rod, returned to the Philippines last month, but not for wire-drawing grades. Q195 grade wire rod can be used “maybe for nails at best,” a Manila trader says. Wire-drawing grade wire rod “certainly” commands a premium over Q195 grade wire rod, he adds.
Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $825-835/t cfr Manila, down $15 on-week.
The rebar import market was quiet with narrowing offer prices. A Malaysian mill’s offer for theoretical-weight 10-40mm diameter rebar has lifted to $855/t cfr Singapore this week. Two buyers ordered around 40,000-50,000t of rebar from the mill last week at $840-845/t cfr Singapore. It was heard to be for May/June shipment.
A Singapore-based trader reports that Chinese rebar prices have come off. He hears theoretical-weight rebar for end-June shipment from lower-tier Chinese mills is being indicated at $855/t cfr Singapore. “It is not a firm offer but can try,” a Chinese trader says. “The Chinese futures dropped today,” he notes. Theoretical-weight rebar from Vietnam is currently offered at $855-860/t cfr and from the Middle East, $865/t cfr. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $840-845/t cfr Singapore theoretical weight, unchanged on-week.
Source:Kallanish
