Posted on 29 Jun 2023
The rebar import market continued to be quiet in Singapore this week, Kallanish notes. The lack of market direction and the volatile Chinese steel futures markets are deterring buying, with users preferring to take a wait-and-see stance.
A Malaysian mill is directly offering theoretical-weight rebar for August shipment at around $560/tonne delivered by truck or around $550/t cfr Singapore. This is unchanged for the past month. "The mill needs to export," a Singapore trader says. Some traders report hearing that a 5,000-tonne cargo from the mill, for end-July/early-August shipment, was sold to a trader at this level last week. “Buying interest is low this week,” a second Singapore trader said on Wednesday. The country has a public holiday on Thursday.
Theoretical-weight rebar from a leading producer in Vietnam is heard offered at around $570/t cfr Singapore. The mill previously sold material two weeks ago at $560/t cfr Singapore.
The first Singapore trader hears of certain traders talking down the market this week. “They are asking end-users to delay buying and indicating that rebar prices will reach $540/t,” he says.
He adds that the current volatility in the Chinese futures market is speculation-driven and reactive to general macroeconomic news and policies. “There are traders who like and benefit from volatile markets,” he observes. But he believes rebar import prices will not fall sharply because firm iron ore will lend price support and steel mills are already losing money.
In Hong Kong, a trader is offering actual-weight rebar for delivery in August/September at $565/t cfr, importing sources say. The offer is for open-origin rebar from China, the Middle East or Asia. “The trader did not disclose much about the offer because he does not think that we need to buy now,” a Hong Kong importer says.
Kallanish maintained BS4449 500B 10-40mm diameter rebar at $550/t cfr Singapore theoretical weight.
Source:Kallanish
