Posted on 04 Jun 2021
Surging Covid-19 infections have struck the domestic rebar markets in ASEAN, Kallanish understands.
Relentless virus infections have led to a near-total two-week lockdown in Malaysia starting 1 June. Rebar prices were tagged at MYR 3,200/tonne ($776/t) delivered just before the lockdown. This is a price hike from MYR 2,800/t three weeks ago in tandem with rising international prices. Competition among the Malaysian mills had prevented prices from rising until the past several weeks, a Malaysian mill manager says
Most Malaysian steel mills have either suspended operations or are running at around 10% of total workforce now. While demand has plummeted, companies have fixed costs, so these mills are currently making appeals to boost output.
In Vietnam, the domestc rebar market is softening amid a new outbreak of Covid infections in the country with movement restrictions including distancing measures commencing in Ho Chin Minh City on 31 May." Construction activities are being restricted and this has resulted in low demand, a Vietnamese mill manager says. Since the infections are under control and the Chinese market has recovered, the price drops, currently $10-20/t from peaks, are not severe, he adds.
Demand has weakened in Thailand amid the rainy season and a recent spike in infections at workers dormitories, factories and construction sites. There is a “semi-lockdown” now, a Thai trader says. “Contractors are also waiting for government approvals to make adjustments in existing contracts due to the jump in steel prices,” he adds. In Thailand, induction furnace billet is priced at around THB 24,000/t ($771/t) and for EAF billet, THB 24,800-25,000/t.
In Singapore, distancing restrictions at construction work sites because of a new wave of Covid cases has slowed rebar demand considerably. The down-and-up price moves in China in the past two weeks have also dented market sentiment.
A Singapore stockist is offering rebar to domestic buyers at $800/t cfr for ex-stock theoretical-weight rebar. But buyers’ price idea is as low as $700/t cfr. “Prices appear to be in the range-bound of $700-750/t cfr,” a Singapore trader says. In Hong Kong, Indian actual-weight rebar offers are around $740-750/t cfr, but buyers are aiming at $730/t cfr.
Kallanish maintained its weekly BS4449 500B 10-40mm diameter rebar price assessment at $740-745/t cfr Singapore theoretical weight.
Source:Kallanish
