Posted on 15 Jul 2022
The rebar import markets in Singapore and Hong Kong remain quiet and sluggish, Kallanish notes. Limited supply of imports appears to be lending price support despite poor market sentiment for long products in the region.
Small-tonnage deals for Malaysian theoretical-weight rebar for September shipment were concluded at $640/tonne cfr Singapore this week, Singapore trading sources report. Two Singapore stockists are heard to have placed orders. The typical cargo size from the mill to Singapore is 5,000 tonnes. Previous orders for Malaysian rebar transacted at $647-650/t cfr Singapore two weeks ago.
Malaysian rebar is the most competitive compared to other sources because of its proximity to Singapore. Cargoes are trucked to Singapore which mean there are no requirements or limits for cargo tonnages, trading sources say. A Singapore trader hears this week that the Malaysian mill is offering rebar at $625/t fob. Freight costs from the mill to Singapore would be around $20/t, he estimates. The mill is the only exporter of Malaysian rebar in recent months to Singapore (see table below), Malaysian mill sources tell Kallanish.
A Singapore buyer says he received a high-priced offer at $750/t cfr for theoretical-weight rebar from Turkey, as well as offers in the high $670s cfr for material from the Middle East.
“The market is so weak,” says a Hong Kong buyer who is not active. “The market is collapsing and no one wants to buy at the moment.” The Singapore and Hong Kong markets are reported by traders to be holding high inventories of rebar.
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $640/t cfr Singapore theoretical weight, down $5 on-week.
Main destinations for Malaysian rebar exports (tonnes)
| Nov 21 | Dec 21 | Jan 22 | Feb 22 | Mar 22 | Apr 22 | May 22 |
China | 262,415 | 346,724 | 232,927 | 190,406 | 218,725 | 98,121 | 45,719 |
Myanmar | 0 | 0 | 700 | 701 | 5,457 | 2,619 | 0 |
Hong Kong | 0 | 0 | 0 | 0 | 0 | 0 | 66,581 |
Singapore | 1,152 | 994 | 1,148 | 1,382 | 4,066 | 31,714 | 13,798 |
Australia | 1,860 | 1,296 | 3,921 | 2,119 | 1,349 | 2,531 | 676 |
Others | 2,267 | 3,805 | 2,796 | 1,434 | 2,571 | 3,558 | 1,164 |
New Zealand | 679 | 2,656 | 1,166 | 229 | 1,257 | 1,925 | 722 |
Indonesia | 1,072 | 532 | 493 | 588 | 464 | 203 | 380 |
Source: Malaysian customs
Source:Kallanish
