Posted on 20 Jul 2022
The Thai domestic long products market is falling, Kallanish understands. Prices for billet and rebar are expected to decline further as domestic scrap prices are on the downtrend.
Leading domestic Thai electric arc and induction furnace mill operators are currently buying Busheling grade scrap at THB 11,700-12,400/tonne ($320-339/t).
The conversion cost has likely gone up by THB 1,000/t to THB 5,000/t because of higher energy costs, which would place domestic billet prices at as low as the equivalent of $475/t, some Thai trading sources say. “I don’t think that the local mills would sell at such low levels,” a trader says. However, there would be pressure for domestic billet to come down. Last week’s domestic billet was quoted at the equivalent of $520/t.
Rebar prices are meanwhile expected to come down further. Local induction furnace 16mm and up diameter rebar prices were pegged last Friday at lows of THB 20,500/t. “Many believe that the current depressed scrap market will cause rebar prices to slip to THB 20,000/t this week and possibly below this level before the end of the month,” a Bangkok trader says. EAF rebar prices are also set to come down from the current THB 21,900/t.
Domestic prices of 5.5mm diameter low-carbon wire rod are prevailing at THB 22,900/t from induction furnace mills and THB 24,000/t from EAF mills. The mills are seeking bids from Thai buyers, Kallanish understands.
Source:Kallanish
