Posted on 07 May 2021
Suppliers continue to hike prices in East Asia’s long product import markets, Kallanish notes. Firm raw materials prices and strong market sentiment continue to drive values higher. Chinese mills are slow to give fresh export offers after returning on Thursday from their long holiday.
A bulk cargo for Turkish rebar was booked at around $725/tonne cfr Singapore earlier this week, trading sources say. The buyer of the cargo is unclear but certain traders are believed to be buying up material in recent weeks to perform on future-delivery orders contracted early this year. Indian theoretical-weight rebar was offered early this week at $725-730/t cfr Singapore. An offer for Turkish rebar was heard at $690/t cfr Singapore a week ago.
Meanwhile, the construction market in Singapore has slowed down due to a labour crunch. The industry, which depends heavily on foreign workers, faces a labour shortage amid renewed tight movement and border controls resulting from the ongoing pandemic. Kallanish raised its weekly BS4449 500B 10-40mm diameter rebar price assessment to $725/t cfr Singapore theoretical weight, up $35 week-on-week.
Wire rod prices have also risen in the region. Indonesian blast furnace wire rod has been offered at $785-790/t cfr Manila early this week, up from the transacted $745/t cfr last week. Vietnamese induction furnace wire rod is also offered at $765/t cfr Manila. There was market chatter that the Vietnamese wire rod offer was taken up, but trading sources were unable to confirm.
Malaysia-origin 6.5mm wire rod for July shipment was heard booked this week at an estimated $780-790/t cif Bangkok. A trader guesses the buyer took a small parcel of 1,000-2,000 tonnes. Another says demand was slow because the Thai market has yet to catch up with the price increases and the rainy season has also started in Thailand. “My customers stopped buying since the market touched $740,” he says.
Kallanish raised its SAE 1008 6.5mm diameter wire rod assessment to $760-765/t cfr Manila on Thursday, up $15 on-we
Source:Kallanish
