Posted on 19 Apr 2019
Low-priced Turkish rebar exports have cooled down prices in Southeast Asia in the past week, Kallanish notes. Three cargoes for June shipment sold at prices below Chinese export price levels.
A 50,000-tonne cargo of Turkish rebar concluded on Tuesday at $480/tonne fob actual weight to Hong Kong. The booking price is equivalent to $510-515/t cfr Hong Kong. A Hong Kong trader believes the Turkish mills sold at under Chinese prices because of the depreciated Turkish currency and weak economy. However, another trader did not think that Hong Kong buyers would have accepted this level.
A second cargo from the same Turkish mill was sold at $493/t cfr Singapore theoretical weight basis late last week. These were sales from the Turkish mill direct to end-users, Kallanish understands.
Several buyers in Singapore jointly booked one more rebar cargo from another Turkish mill at $500-505/t cfr. This third cargo was done via an international trader.
Turkish rebar suppliers do not need to sell at under $500/t cfr considering Singapore buyers were previously willing to accept material at $500/t cfr, a Singapore trader says. Chinese rebar was previously booked at $510/t cfr during the second half of March, he adds.
Chinese rebar offers were prevailing at $535/t cfr Singapore and higher last week in tandem with a strong domestic market. “Chinese rebar offers are now at least $545/t cfr Singapore," a Chinese trader says. "At current prices, Chinese rebar is out of the market," the Singapore trader says. A bulk cargo of Ukrainian rebar concluded 2-3 weeks ago at $495/t cfr Singapore theoretical weight.
Kallanish assessed its weekly BS4449 500B 10-40mm dia rebar price on Thursday at $495-505/t cfr Singapore, down $15 on-week.
