Posted on 29 Apr 2022
East Asian long product import markets continue to soften, Kallanish notes. Rebar import prices, which had been holding since mid-March, have now started to fall.
Vietnamese theoretical-weight rebar is offered at $830-835/tonne cfr Singapore this week, down $25/t on-week. The mill is currently offering at $800/t fob Vietnam. Amid the imposed Covid-19 lockdowns, Chinese mills are also looking for export business. A mill located near Shanghai is offering theoretical-weight rebar at $840/t cfr Singapore.
A Malaysian mill previously very active in rebar export sales was not offering this week. “They already sold a lot,” a Singapore trader says. Around 40,000-50,000 tonnes of rebar from this mill was booked two weeks ago at $840-845/t cfr Singapore. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $825-830/t cfr Singapore theoretical weight, $15 lower on-week.
Some rebar cargoes sold to Hong Kong are delayed at Chinese ports, a trader reports. But export sales from China are ongoing. “Freight conditions in China can change very quickly,” he adds.
In Hong Kong, the above-mentioned Vietnamese mill is offering actual-weight rebar at $825/t fob. Actual-weight rebar shipped from the Persian Gulf is meanwhile offered at a lower $825/t cfr, importing sources say. Rebar cargoes from the Middle East are cheaper because they are large-tonnage bulk shipments, trading sources note.
Meanwhile, offers for 6.5mm diameter blast furnace SAE 1008 wire rod from within Southeast Asia have fallen to $815/t cfr Manila from $825-835/t cfr last week. A well-known Chinese mill is offering wire rod at $830/t fob this week. This would be equivalent to $865-870/t cfr Manila. “This [price level] obviously won’t fly,” a Manila trader says. He has not heard of any recent orders for imported wire rod. Lower-tier Chinese mills are also heard offering Q195 grade wire rod at around $800/t fob.
Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $810-815/t cfr Manila, down $17.5/t on-week.
Source:Kallanish
