Southeast Asia wire rod, rebar markets move sideways

Posted on 26 November 2021

ASEAN import markets for construction long products were flat during the week. Suppliers are aiming for price hikes amid the recent price rebound in China, Kallanish notes.

Small tonnages of 6.5mm diameter blast furnace wire rod from Malaysia were booked this week for end-January shipment at $710/tonne cfr Manila. While the transacted price is unchanged from last week, suppliers are hiking export quotes to $715-720/t cfr this week. In Thailand, there have been a couple of orders for Malaysian and Indonesian blast furnace wire rod at $705-710/t cif respectively.

The Indonesian mill is aiming to export at $720/t cfr Southeast Asia, and the Malaysian mill at $680/t fob Malaysia, a Chinese trader reports. Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $710/t cfr Manila, unchanged from last week.

Meanwhile, the rebar market in Singapore seems to be more active this week. Buyers would like to buy January/February-shipment spot cargoes and are bidding at $710/t cfr, a Singapore trader says. He does not think importers are in a hurry because there is ready supply from a Singapore stockist at S$1,040 ($760/t) delivered. Also, despite the rise in Chinese steel prices, international values are dropping and wintry conditions in China are expected to weaken rebar demand.

Another says buyers are in the market to replenish rebar sizes but they are aiming for low prices of under $700/t cfr. A trader is indicating an offer for Middle Eastern rebar at $725/t cfr Singapore, an importer says. 

Offers for forward-delivery cargoes of rebar for shipment in the second half of 2022 have dried up this week. Deals for such cargoes of theoretical-weight rebar, which closed at as low as $640-660/t cfr Singapore, previously dampened buying interest. 

Kallanish maintained BS4449 500B 10-40mm diameter rebar at $720-730/t cfr Singapore theoretical weight.

In Hong Kong, spot offers for actual-weight Middle Eastern rebar are prevailing at $720-725/t cfr, a regional trader says. Traders are trying to sell at $725/t from their position cargoes, a Hong Kong buyer says. “They did not tell us the origin, only the price,” he adds. He thinks there are no takers at this level.

Source : Kallanish