Posted on 12 Jan 2024
The rebar import market is showing signs of softening in Singapore on the recent weakening of the Chinese steel and iron ore markets, Kallanish notes. But traders also say that mills are generally reluctant to lower offer prices.
A Malaysian mill’s offer for theoretical-weight rebar is officially at around $570/tonne trucked to Singapore, equivalent to $565/t cfr Singapore. This would apply for minimum 10,000-tonne orders. Its offers were $5/t higher a week ago.
Some other lower offers are also heard for material from this mill for March shipment, at $560-565/t cfr. These are attributed to certain traders shorting the market. Kallanish assesses BS4449 500B 10-40mm diameter rebar at $560-565/t cfr Singapore theoretical weight, down $2.5 on-week.
The market is still quiet in Singapore, one importer says. But he thinks that raw materials prices will not come down much, while freight is firm. Construction projects continue to proceed in Singapore and users are buying on a need basis, a Singapore trader notes. Mills are unwilling to lower prices because there is a time lag between raw material and steel pricing, he adds, with raw materials contracts based on monthly pricing.
Chinese theoretical-weight rebar offers are still very firm at $590-595/t cfr Singapore, an importer says. But a Chinese trader says he can source Chinese rebar much lower, at $555/t fob or $575/t cfr Singapore. In Hong Kong, offers for actual-weight rebar from the Malaysian mill are heard at $575-580/t cfr compared to $580/t cfr last week.
Source:Kallanish
