Posted on 17 May 2024
ASEAN import markets for wire rod and rebar remain sluggish, Kallanish notes. Continued volatility on the Shanghai Futures Exchange (SHFE) is causing regional buyers to delay placing orders.
Non-VAT Chinese wire rod has returned to the region. Offers in the Philippines for this material, for July shipment of 6.5mm upwards SAE 1008 wire rod are heard at around $530/tonne cfr Manila. However, these are expected to edge slightly higher because of the rising SHFE and the appreciating Chinese yuan. Kallanish assesses SAE 1008 6.5mm-diameter wire rod at $525/t cfr Manila, unchanged on-week.
Trading sources say they have not heard of deals for wire rod during the week. “Prices are volatile. Futures are up sharply today and partly due to currency too,” a Manila trader noted on Thursday. Offers for regional wire rod from ASEAN are at about the same as last week, around $550/t cfr Manila.
In Vietnam, new offers for Chinese wire rod are at around $525/t cfr because Chinese futures prices are going up sharply, a southern Vietnam trader said on Thursday. Offers are typically $10/t lower in Vietnam compared to the Philippines, to reflect the freight gap.
In Thailand, a 2,000-tonne cargo of Chinese wire rod was heard transacted on Thursday at $538/t cif, local trading sources say. A Bangkok trader says he does not know if the wire rod involved circumvented VAT payment. However, Kallanish notes that Chinese-compliant wire rod is offered at around $530-540/t fob.
Similarly, there is little trading activity heard for imported rebar in Singapore. A leading Malaysian exporting mill’s offer for theoretical-weight rebar for July shipment remains unchanged at around $535/t trucked to Singapore. This is equivalent to $525-530/t cfr Singapore. These are for bookings of 10,000t cargoes, while smaller cargoes will command higher prices. The Malaysian mill's offer for wire rod is at $545/t trucked to Singapore.
A Chinese mill has lowered its offer for theoretical-weight rebar to $560/t cfr Singapore, while another Chinese mill’s offer is at $560/t fob. “They cannot compete with Malaysian rebar,” a Singapore trader observes.
Kallanish maintains BS4449 500B 10-40mm diameter rebar at $525/t cfr Singapore theoretical weight, unchanged on-week.
Source:Kallanish
