Posted on 20 Dec 2019
The markets for wire rod and rebar imports appear to have peaked in Southeast Asia, Kallanish notes. They could be correcting downwards, following China's domestic market, after rising strongly in recent weeks.
Offer prices for wire rod have fallen and buying interest is waning due to the approach of the seasonal year-end lull. In the Philippines, Chinese wire rod offers have fallen by $5/tonne to $490-495/t cfr Manila. Offers for Malaysian wire rod are now prevailing at $480/t cfr, down from $480-485/t cfr a week ago.
“The market appears to be softer,” a Manila trader says. He has heard of recent orders for Malaysian wire rod but thinks that demand is thinning out. “This week is unofficially the last working week for the year,” he says. Market players in the Philippines will take their long year-end holiday from next week.
Indian-origin wire rod is being offered at $490-495/t cfr Manila but, compared to imports from China and Malaysia, Indian material faces a 1% import duty disadvantage.
Kallanish raised its SAE 1008 6.5mm diameter mesh-grade wire rod assessment by $2.5 on week to $480/t cfr SE Asia.
In Singapore, the rebar market is sluggish while offers are holding firm. Offers for Qatar-origin rebar are heard at $448-450/t cfr theoretical weight basis. A cargo of rebar from Qatar was ordered at $445/t cfr Singapore last week.
Chinese rebar is still offered at $490/t cfr Singapore, unchanged from the week before. While a Singapore trader says that Turkish rebar is no longer competitively priced for the Singapore market, another heard Turkish rebar is currently offered at $475/t cfr Singapore.
The rebar market is quiet because Singapore importers have already purchased a lot of cargoes, trading sources say.
On Thursday, Kallanish maintained its weekly BS4449 500B 10-40mm diameter rebar price at $445/t cfr Singapore theoretical weight basis.
