Cookie & Privacy Policy

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. View the privacy policy to find out more here.

Kallanish Kallanish

Knowledge matters Knowledge matters

September, 25th 2020

Free Trial Buy Subscription
AUG 06
08:19

Rebar, wire rod offers shoot up in Asia

807 Views

Long product import markets in Southeast Asia have seen offer prices shoot up this week, Kallanish notes.

In the Philippines, Vietnam-origin 6.5mm diameter wire rod rolled from induction furnace billet is now offered at $463/tonne cfr Manila, up from the transacted $450/t cfr last week. Several deals of 10,000 tonnes each took place at this level to Cebu and Manila, Vietnamese trading sources say. "Now buyers can pay $465/t cfr Manila," a Vietnamese trader said on Thursday.

A newly enforced pandemic lockdown in Manila until 18 August has brought uncertainty to the import market. “It started two days ago so we surely haven’t felt the full impact yet,” a Manila trader said on Thursday. Last week, several small deals also took place for Indian wire-drawing wire rod at $460/t cfr Manila. Offers for mesh-grade wire rod from Malaysia are prevailing at $480/t cfr, up from $465/t cfr last week.

Kallanish assessed SAE 1008 6.5mm diameter mesh-grade wire rod at $463-467/t cfr Manila, up $10 on-week.

Regional rebar import markets also saw offer prices jump up on-week. Offers for Turkish rebar are indicated at $485/t cfr Singapore, theoretical-weight basis, while Chinese rebar suppliers are talking of offering at around $500/t cfr Singapore, trading sources say.

“Offers have gone up by $20/t from last week,” a Singapore trader notes. The hike in offers took effect from 1 August. Construction work has started to resume, but steel demand remains low. Productivity at these sites will be -50-60% lower compared to before Covid-19, as workers are required to follow measures which will reduce physical contact.

In Hong Kong, actual-weight rebar offers are prevailing at $470/t cfr for Indian-origin material, and possibly at $480/t cfr for Turkish rebar. With domestic prices of rebar at the equivalent of around $450/t in both Singapore and Hong Kong, these rebar offers will not find any takers, importing and trading sources say.

On Thursday, Kallanish raised its weekly BS4449 500B 10-40mm diameter rebar price to $430-435/t cfr Singapore theoretical weight, up $10 on-week.