ACCOUNT PROFILE

East Asian rebar importers postpone purchases

Posted on 24 September 2021

East Asian rebar import markets have been inactive during the week, Kallanish notes. Price volatility in the Chinese domestic long products markets weighed on regional steel markets in ASEAN, which are depressed by surging Covid-19 infections.

Offer prices for Turkish theoretical-weight rebar for November shipment are heard in Singapore at $725/tonne cfr and for Middle Eastern rebar at $750/t cfr this week. Importers continue to show limited buying interest and bids are unchanged from last week at $700-705/t cfr Singapore. “There are no bookings. The Covid-19 situation is getting worse in Singapore,” a local trader says.

Singapore reported 1,457 new Covid-19 cases on 22 September, the highest since April 2020. “Finished steel is just not selling. Construction restrictions have slowed demand,” another trader says.

Kallanish assessed BS4449 500B 10-40mm diameter rebar at $715-720/t cfr Singapore theoretical weight, unchanged on-week.

In Hong Kong, buying interest is thin because of high rebar inventories. “Mills appear to want to lift prices,” an importer says. He says he is waiting for firm offers and notes that Turkish rebar quotes would be priced at about $730/t cfr actual weight. Hong Kong buyers are not keen to make purchases now because of high rebar stocks. He thinks they will only be keen to book material for December shipment.

Demand is slow in Hong Kong and there are enough stocks too, a regional trader notes. He heard an Indian mill’s rebar offer last week at $735-740/t cfr Hong Kong actual weight. “But nothing was concluded,” he adds.

Source : Kallanish