Posted on 11 Jun 2021
Rebar markets continue to be sluggish in Southeast Asia, Kallanish notes. Prices are correcting downwards after reaching peaks in late May. The slowdown in China and restricted construction activity in the region are dampening steel demand.
Local theoretical-weight rebar prices in Thailand have fallen to THB 23,000/tonne ($738/t) from THB 25,000/t for rebar produced by leading induction furnace mils, Bangkok-based trading sources say. A leading EAF mill in Thailand is offering rebar at THB 23,800/t versus THB 25,700/t previously. Construction sites are facing a slowdown because of labour shortages as workers have been quarantined amid recent Covid-19 outbreaks.
In Singapore, tightened enforcement of movement restrictions and distancing measures of workers at sites have also slowed down construction. Domestic theoretical-weight rebar prices are prevailing at SGD 1,000-1,050 ($755-792/t), unchanged from last week. However, sales are slow.
Offers for rebar from India are prevailing at $760-770/t cfr. In the past 1-2 weeks, an offer for prompt shipment of Middle Eastern rebar was heard at $730/t cfr Singapore. But it is unclear if anyone took up the cargo.
“Buyers expect that Chinese demand will slow down because of the rainy season there,” a Singapore trader says. A leading Chinese steel mill is still insisting on an export price for theoretical-weight rebar at $890/t fob. In Vietnam, mills have lowered rebar prices by around $20/t. Prices in southern Vietnam are prevailing at the equivalent of $730/t actual weight.
Kallanish lowered its weekly BS4449 500B 10-40mm diameter rebar price assessment at $735-740/t cfr Singapore theoretical weight, down $5 on week.
Source:Kallanish
