Posted on 02 Apr 2021
The import market for rebar in Singapore and Hong Kong continues to attract bulk cargoes of rebar from outside Asia, Kallanish notes. Chinese rebar, traditionally sold in these two countries, has taken a back seat because a widely-anticipated Chinese export rebate cut has not been confirmed officially.
Offers for theoretical-weight rebar from Qatar are heard at $665/tonne cfr Singapore. A cargo of Turkish theoretical-weight rebar for June shipment was booked by end-users from an international trader last week at $665/t cfr Singapore.
Demand is strong in Singapore because of replenishment buying amid renewed construction activities, a Singapore trader says. Since domestic rebar prices are stable at SGD 950-970/t ($706-720/t) delivered in Singapore, users are unlikely to pay more than $665/t cfr for imports, he says.
Chinese mills are generally not offering rebar for export as they await an official confirmation about a possible rebate tax change. As of 1 April, there was market chatter that the export rebate for hot rolled products, including rebar, will be reduced from the existing 13% to zero effective 10 April.
Certain Chinese mills say they would like to enter into export contracts which would allow the contract to be either rendered void or renegotiated in the event the rebate is cut to zero, a trader says. But there are also mills which have already factored in the full removal of the 13% rebate into hiked export prices, he adds.
In Hong Kong, actual-weight rebar from Qatar is offered at $685/t cfr Hong Kong. Some Hong Kong trading sources heard the offer, for June/July shipment, was taken up. A trader there believes the recent bulk rebar bookings are from Chinese traders covering their short positions ahead of the Chinese export rebate changes. A Turkish rebar cargo was booked at $672.5/t cfr Hong Kong last week.
Kallanish has reduced its weekly BS4449 500B 10-40mm diameter rebar price assessment to $665/t cfr Singapore theoretical weight, down $5/t.
Source:Kallanish
