September's wide-flanged H-beam import prices into Southeast Asia gained on the month, as regional offers were hiked amid rising raw material costs, sources said.
S&P Global Platts assessed the September price of wide-flanged S275JR H-beams at $555/mt CFR Southeast Asia, up $20/mt from August.
Offers for South Korean-origin H beams were heard ranging at $560-$570/mt CFR Singapore in the latter half of September, up from $560/mt the month prior, while Thailand-origin cargoes were offered at $575/mt CFR.
Workable prices from buyers were cited at $555/mt CFR. However, there was still limited interest due to slow corresponding downstream demand.
“Prices are up mainly due to mills having to stomach higher scrap, iron ore prices recently," a Singapore-based stockist said. "But we still don’t see a huge need to stock yet.”
Average Japanese H2 FOB scrap prices in September witnessed a 6% gain from the previous month's average, according to Platts data.
Despite construction activities heard gradually picking up in Singapore, sources said that stock levels remain elevated at sites, deterring upstream purchasing.
“Although construction activity seems to be improving, the consumption of steel stocks is still relatively slow at the sites,” another Singapore-based trader said. “We expect imports of H-beam may only be more active in November or December for shipment in Q1 2021.”
-- Marcus Ong, Samuel Chin
Source : Steel Business Briefing
