Asian billet, rebar prices were largely stable Nov. 22 amid a retreat of domestic Chinese futures and a slow trade.
In the seaborne billet market, buying indications remained steady at $520-$525/mt CFR Manila for 5SP cargo despite offers raised. A deal was heard concluded at $530/mt CFR Manila for 5SP cargo.
Vietnamese and Indonesian mills raised offers to $525-$530/ mt on a FOB basis. Induction furnace 5SP cargo was offered at $535/mt CFR Manila. “$530 CFR still sounds not affordable since re-rollers can’t sell rebars at a profitable level, so induction furnace may be more preferable now,” said a Manila-based trader, adding that induction furnace cargo wasn’t offered competitively.
Platts assessed the price of 5SP 130 mm billet on a CFR Southeast Asia basis at $530/mt, unchanged day on day.
In the domestic Chinese billet market, demand was tepid after the futures retreat.
Chinese domestic billet was assessed at Yuan 3,760/mt on a Tangshan ex-stock basis for Q235 billet material, stable day on day, with concluded deals and tradable levels aligning at that price point. Downstream re-rollers were still reluctant to purchase to proceed with production due to a low rerolling margin, according to market participants.
The most active rebar January 2024 contract on the Shanghai Futures Exchange closed Yuan 18/mt lower at Yuan 4,001/mt ($560/mt).
Market sources noted that the slight decline in futures was due to normal market correction after the surge seen in previous days rather than external policy news.
In the domestic Chinese rebar market, while tradable levels were heard at around Yuan 3,890/mt ex-stock Beijing theoretical weight in the morning, dipping market sentiments in the afternoon saw a deal concluded at Yuan 3,870/mt theoretical weight instead, with tradable levels aligning at that level.
Platts assessed the domestic Beijing HRB400 18-25 mm rebar spot price at Yuan 3,990/mt ex-stock in actual weight, down Yuan 31/mt day on day.
In the seaborne rebar market, prices remained steady on stable tradable levels and quieter market activity. Despite the dip in Chinese futures, some sources noted that it was unlikely to have a significant immediate impact on spot seaborne prices.
In Singapore, a Vietnamese-origin offer was heard at $570/mt CFR Singapore, while Chinese mills’ export offers were heard at around $585-$595/mt FOB China. A Malaysian-origin offer was heard at $555/mt DAP Singapore for the February shipment. A deal was heard concluded this week at $552/mt CFR Singapore theoretical weight.
In Hong Kong, a deal was heard concluded Nov. 22 at $560/mt CFR Hong Kong actual weight for 20,000 mt, for February shipment. Tradable levels were heard aligning at that level as well, with market participants heard procuring on a need-to-buy basis.
Platts assessed 16-32 mm BS4449 Grade 500 rebar at $552/ mt CFR Southeast Asia, unchanged day on day, and Chinese export 16-40 mm diameter BS500B grade rebar was assessed at $550/mt FOB, unchanged day on day.
--- S&P Global Commodity Insights.
