News Room - Steel Industry

Posted on 26 Jul 2024

ASEAN longs markets succumb to China, regional weakness

The import market for longs remain under pressure in ASEAN, Kallanish notes.

In Singapore, theoretical-weight rebar for September shipment from Malaysia is prevailing at $510-515/tonne dap (trucked to Singapore). This is $5 lower than last week. A firm bid for 10,000t for September delivery at $505/t dap is likely to be accepted too, a Singapore buyer says Thursday. The dap Singapore basis price is $5-10/t higher than cfr Singapore basis

The market has weakened further on the sliding Chinese steel futures market. ASEAN demand for finished steel is also sluggish. In Hong Kong, actual-weight rebar from the above-mentioned Malaysian mill for September/October shipment is offered at around $505/t cfr. Chinese rebar offers are also at similar levels.

Kallanish assessed BS4449 500B 10-40mm diameter rebar at $500-505/t cfr Singapore theoretical weight, down $5 on week.

Similarly, wire rod offers slipped in ASEAN and are prevailing at $515-517/t cfr Manila. At least one 10,000t cargo of Indonesian 6.5mm diameter wire rod was heard booked at $515/t cfr Cebu.  "There may have been another to Cebu too," a Manila trader says. He estimates that the transaction price would be equivalent to $517-518/t cfr Manila. Wire rod from the same Indonesian mill was previously ordered around 12 July at $521/t cfr Manila. Kallanish assesses SAE 1008 6.5mm-diameter wire rod at $515-517/t cfr Manila, down $4 on week.

The Indonesian mill recently sold its wire rod at $485/t fob or at $501/t cfr to Taiwan, trading sources say. It now wants to raise its wire rod price to $490/t fob. "Its shipment schedule for wire rod is already for October," a Jakarta trader notes. The mill's wire rod price during the week through 19 July was officially $500/t fob. 

The mill has been cutting its billet export price. It sold a 10,000t 3sp 150mm billet cargo at $465/t fob Wednesday, down from $470/t fob Monday this week. 

In Vietnam, low-priced wire rod prices have fallen sharply. Chinese-origin 6.5-8mm SAE 1008/Q195 wire rod for September shipment from four specified mills is currently offered at $505/t cfr Ho Chi Minh, down from 518/t cfr Ho Chi Minh. There are also offers at $500/t cfr in Vietnam, a trader says Thursday. 

Thai buyers showed no buying interest for offers of Indonesian and Malaysian wire rod on Monday at $525/t cif and $510/t cif respectively. Domestic wire rod is the equivalent of $495/t delivered only, a Bangkok trader notes.

Source:Kallanish