Asian seaborne rebar and billet prices declined May 11, while Chinese domestic prices rebounded tracking gains in the futures.
The CFR Southeast Asia 16-20 mm diameter BS4449 grade 500 rebar fell $9/mt to $786/mt, while the FOB China rebar price was assessed lower by $12/mt at $769/mt, according to S&P Global Commodity Insights.
Rebar demand was down in Singapore following a two-week safety timeout across construction sites.
The drop in demand in Singapore is expected to be temporary, as rebar demand would see "enough [construction] projects in Singapore," a Singapore fabricator said.
Prices in Vietnam weakened as an offer for Vietnamese rebar dropped by $45/mt on the day to $775/mt FOB Vietnam actual weight, or $753/mt FOB Vietnam theoretical weight for June and July shipment, 13-32 mm, a Vietnam-based mill source said, citing negotiable prices order by order.
Some Hong Kong stockists received offers from Emirates-origin traders at $785/mt CFR Hong Kong actual weight for July shipment, $790/mt CFR for a Saudi Arabian cargo, and $797/mt CFR for Vietnamese rebar.
The Chinese domestic spot price for rebar rose Yuan 52/mt ($8/mt) from the previous session and was assessed at Yuan 5,093/mt ($760/mt) ex-stock actual weight, including 13% value added tax.
"The price just dropped too much," a Chinese trader source said, referring to the rebound in the domestic Chinese rebar prices. The overall sentiment was buoyed by regulatory announcements of further support for the stock markets, the trader said.
The most actively traded October 2022 rebar contract on the Shanghai Futures Exchange closed at Yuan 4,681/mt ($695/mt) May 11, up Yuan 74/mt.
Southeast Asia 5SP 130 mm spot billet was down $2/mt during the Platts Market on Close process May 11. The China-imported 3SP 150 mm spot billet was assessed at $639/mt CFR China, down $4/mt.
The market received several Russian billet offers in the $610-$680/mt CFR China range. Most buyers waited on the sidelines, due to a fluctuating market. Buyers were unable to bid at high prices because of low domestic prices.
The Philippines market was mostly quiet, as no infrastructure projects would be signed during a government change process. "Expect demand to rise after inauguration in June", a Philippines-based source said. Incoming President Ferdinand Romualdez Marcos Jr. is expected to continue the policies of the Duterte administration due to the close ties between the two. "There is clear show of support for previous projects," said a second Philippines-based source.
Thai-origin 3SP 150 mm induction furnace billet at $695 was heard to have been offered on a CFR Manila basis, June shipment.
The Chinese domestic billet market rebounded May 11, with the Domestic Tangshan Q235 billet assessed up Yuan 60/mt ($10/mt) at Yuan 4,720/mt ($701/mt), according to S&P Global.
