Posted on 28 Feb 2024
A recent low-priced export deal for rebar to Singapore and Hong Kong reflects the weakness in the region’s home markets, Kallanish notes. Buying will take place if importers can achieve their target prices.
A total of 65,000 tonnes of mostly rebar and some deformed-bar-in-coil from a leading Vietnamese mill were sold at $560/t cfr Hong Kong and the same price to Singapore. The March-shipment cargo was split with 25,000t sold to Hong Kong and 40,000t to Singapore, of which a leading Singapore stockist took up most of the cargo. The deal is believed to have been brokered through Chinese traders.
The cargo that is destined for Hong Kong is on actual-weight basis. However, freight going to Singapore from Vietnam is $17/t higher than to Hong Kong because the Jurong port has cfr liner out terms, a Singapore importer reports hearing from traders. He heard that the Singapore stockist which booked the Vietnamese rebar cargo has the attitude of just asking sellers to match its target price without any negotiation.
This booking is deemed low-priced because the Vietnam’s mill offer price for March/April was pegged at $565/t fob actual-weight basis at the time of the deal, which was heard late last week. The Vietnamese mill's rebar offer price is now officially at $570/t fob, market sources say.
Last Thursday, Kallanish assessed BS4449 500B 10-40mm diameter rebar at $560-565/t cfr Singapore theoretical weight, down $2.5 on-week. The market has been quiet because of the Lunar New Year celebrations. The latest deal heard was a 10,000-tonne cargo of rebar from Malaysia ordered at $565/t trucked to Singapore during the week through 9 February.
Source:Mysteel Global
