Asian rebar and billet prices fell slightly April 27 amid muted trading activity while Chinese domestic rebar prices continued to rise as futures rebounded.
Platts assessed 16-20mm diameter BS500 grade rebar at $806/mt FOB China, down $5/mt on April 27 while the CFR Southeast Asia rebar was also down $5/mt at $820/mt during the Platts Market on Close assessment process by S&P Global Commodity Insights.
Chinese domestic spot price for rebar was up Yuan 41/mt ($6/mt) from the previous session and was assessed at Yuan 5,093/mt ($776/mt) ex-stock actual weight, including 13% value added tax.
Some China mills in northern and northeastern China lowered their offers for rebar export. A northern China mill source said that the offer was at $800/mt FOB China theoretical weight or $825/mt FOB China actual weight for June shipment, down $10/mt from April 25. A northeastern China mill offered at $790/mt FOB China theoretical weight for July shipment, said the company source.
In Singapore, rebar demand continues to be influenced by a shortage of manpower in the construction sector, which has delayed key infrastructure projects.
Several large construction works such as the Cross Island Line underground tunnels are slated to commence in the second half of 2022, and demand is expected to rise then.
In China, rebar futures rose slightly on April 27 after a sharp drop April 25. The most actively traded rebar October contract on the Shanghai Futures Exchange closed at Yuan 4,864/mt ($741/mt) April 27, up Yuan 35/mt from April 26.
Billet prices also saw mixed activity on April 27 as the domestic Tangshan Q235 billet rose Yuan 5/mt ($0.76/mt) to Yuan 4,820/mt ($735/mt), while the China-imported 3SP 150mm spot billet was assessed at $685/mt CFR China, down $2/mt on the day, during the Platts MoC assessment process.
Southeast Asia 5SP 130 mm spot billet was assessed at $753/mt CFR Manila, down $2/mt on the day.
Selling indication for Indonesia billet was heard at $730-$740/mt FOB Indonesia, said a market source. Demand for billet in Indonesia is expected to fall as the country moves towards the Ramadan holidays.
"Right now buying market is all muted", a Singapore trader said as demand activity weighed on billet prices for April 27. A lack of billet activity was attributed to the elections in the Philippines, as government infrastructure projects are banned for 45 days before the election day.
Buying indication was heard at $740-$750/mt CFR Manila for 5SP billet.
