Posted on 24 Apr 2020
Import prices for wire rod and rebar have weakened in Southeast Asia on slackened demand, Kallanish notes.
Rebar from Russia and India is heard at $410/tonne cfr and $415/t cfr Hong Kong respectively, actual weight basis. A Hong Kong trader heard 15,000t of Russian rebar booked for July shipment at $400/t cfr Hong Kong. An importer says he did not hear of the deal but believes the supplier may accept a firm bid at $400/t cfr.
The Hong Kong market is slow because many rebar cargoes from Turkey, China, India and Russia are due to arrive in May and June, trading and importing participants say. Also, the other main importer in the region, Singapore, has basically suspended buying due to a near lockdown in place until 1 June to curb an escalating coronavirus outbreak.
“There will be no buying this and next month,” a Singapore trader says. Construction has stopped because workers are in quarantine, he adds. Suppliers are inviting bids at $430/t cfr Singapore, theoretical-weight basis. He thinks that if there were buyers, their price idea would be at $415/t cfr for Chinese rebar.
An Indian offer at $415/t cfr Hong Kong theoretical weight would be equivalent to around $403/t cfr Singapore actual weight. Freight for shipments to Singapore and Hong Kong out of India is similar.
On Thursday, Kallanish lowered its weekly BS4449 500B 10-40mm diameter rebar price at $405-415/t cfr Singapore theoretical weight, down $15 on week.
Meanwhile, the regional wire rod market continues to be in the doldrums amid government-imposed lockdowns. Chinese-origin non-alloy 6.5mm diameter wire rod was offered this week at $435/t cfr Manila. While the offer is for June shipment, the supplier can ship the cargo at end-May.
An Indonesian mill is inviting firm bids at competitive prices, says a Manila trader who believes the mill's offer is at $425/t cfr Manila. Buying interest is, however, “…near zero,” he says, because of ongoing lockdowns in Cebu and Luzon. "I don't think anyone is buying at all," another trader says.
Thai buyers will resume purchases next month after booking wire rod from Brazil and South Korea at $420/t cif and $425/t cifr respectively earlier this month. These include 5.5mm-diameter-sized material.
Kallanish lowered its SAE 1008 6.5mm diameter mesh-grade wire rod assessment at $425-430/t cfr Manila, down $2.5 on-week.
Source:Kallanish
