The Asian billet and rebar markets exhibited divergent trends on May 13, with prices in Southeast Asia strengthening due to supply constraints and limited offer availability, while domestic prices in China remained rangebound.
In Tangshan, the tradable value for Q235 billet was reported at Yuan 3,160-3,170/metric ton, with Yuan 3,170/mt heard closer to the Platts Market on Close, reflecting an increase of Yuan 5/mt from the previous day.
In contrast, the Beijing rebar market showed weakness, with the tradable value for HRB400 18-25 mm rebar reported at Yuan 3,300-3,310/mt, with Yuan 3,310/mt heard closer to the Platts MOC.
A Hangzhou-based trader said that falling futures prices have undermined market confidence, leading to reduced transaction activity.
Platts assessed Chinese domestic Q235 billet at Yuan 3,170/mt on a Tangshan ex-stock basis, up Yuan 5/mt day over day.
Platts assessed the domestic Beijing HRB400 18-25 mm rebar spot price at Yuan 3,310/mt ex-stock, down Yuan 10/mt day over day.
In the export billet market, offers for Chinese 3SP 150 mm billet were heard at $487-$490/mt FOB China, down $3/mt from the previous day.
An indicative bid for 3SP 150 mm billet was reported at $500/ mt CFR Manila, translating to approximately $470/mt FOB China, assuming $30/mt freight.
A trader based in east China said that even with the current decline in futures prices, many traders holding bull spread positions are still incurring losses if they sell at the current low export prices.
Platts assessed Chinese export 3SP 150 mm billet at $480/mt FOB China, up $1/mt from the previous day.
In Manila, offers for 5SP 150 mm billet were heard at $515- $516/mt CFR Manila, stable from previous levels, with tradable values reported at $513/mt CFR Manila for 5SP and $507-$508/ mt for 3SP, according to regional sources.
Multiple local sources referenced the deal concluded last week at $485/mt FOB China, sold to Manila, translating to $507/mt for 3SP and $513/mt for 5SP on a CFR Manila basis, indicating this level could represent the current market.
A China-based mill source referenced the same deal, describing the price as “too low” for their position, and indicated that mill offers have not dropped below $490/mt FOB China since the Labor Day holiday.
Platts assessed 5SP 150 mm billet at $513/mt CFR Manila, up $7/mt from the previous day.
In the rebar export market, supply tightness continued to support prices. Chinese-origin offers were heard above $525/mt CFR Singapore, with the $520/mt offer level notably absent.
A trader based in east China said that, although domestic rebar prices have declined over the past two days, mills are maintaining firm export offers and are unwilling to reduce them.
In Hong Kong, offers were heard at $525/mt and above CFR Hong Kong, with the most competitive offers remaining stable.
A local fabricator said there are currently few rebar offers available and factories are also refusing to lower their prices.
Platts assessed the 16-32 mm BS4449-grade 500 rebar at $520/mt CFR Southeast Asia, up $2/mt from the previous day.
Platts assessed the Chinese export 16-40 mm diameter BS500Bgrade rebar at $506/mt FOB, up $1/mt from the previous day.
