Posted on 26 Aug 2022
The rebar and wire rod import markets continue to be weak in Southeast Asia, Kallanish notes.
A below-market rebar offer continues to generate market chatter in Singapore. There are still no takers for 10,000t of theoretical-weight rebar from Oman. This week, the trader holding the cargo is heard to have lowered the offer price to $573/t cfr, compared to $580/t cfr last week.
The Middle Eastern rebar cargo is already on the water and could arrive in early September. Several smaller Singapore buyers have previously booked 15,000t of the 25,000t cargo at around $585/t cfr. The trader’s position cargo is “creating a mess in the market,” a Singapore trader says. Another Middle Eastern rebar cargo, from Saudi Arabia, is also heard offered at $575/t cfr Singapore, but further details of the cargo are unknown.
“The market is still weak,” another Singapore trader says. Other offers in the market are relatively unchanged from last week. A Malaysian mill’s offer for blast furnace theoretical-weight rebar for November shipment is at $610/tonne delivered-at-place (dap) Singapore, importing sources say. The Malaysian mill has sold out its export allocation for October shipment, market participants heard.
Theoretical-weight rebar originating from the Middle East for October shipment is heard at $620/t cfr. A Chinese Tier 1 mill’s offer at $710/t cfr is “too high for consideration as domestic prices rebounded,” a buyer in Singapore says. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $600/t cfr Singapore theoretical weight, unchanged on-week.
Meanwhile, the wire rod import market in the region is stagnant. Offers for 6.5mm SAE 1008 blast furnace regional wire rod for October shipment are priced at $590-595/t cfr Manila, similar to last week. “Demand is sluggish,” says a Manila trader who has not heard of much trading taking place. Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $585/t cfr Manila, unchanged on week.
In Thailand, Malaysian-origin blast furnace 6.5mm rod is offered at $590/t cif. But Thai buyers are bidding at $565/t cif, a Thai trader says.
Source:Kallanish
