Asian rebar prices inch up on market expectations, billet increase

08 August 2022
Asian rebar prices inch up on market expectations, billet increase

          Asian rebar prices increased Aug. 5 on the demand expectation for October shipment cargoes, and Chinese market rose with active trading activities.

          In China, the most actively traded October 2022 rebar contract on the Shanghai Futures Exchange closed at Yuan 4,036/mt ($599/mt) Aug. 5, up Yuan 56/mt on a day.

          Trading activities in China domestic market were active during the day, as domestic buyers were cautious when the price dropped Aug. 4, and chose to purchase when the price rebounded Aug. 5, said an eastern China trader.

          The Beijing domestic rebar spot price was assessed at Yuan 4,186/mt ($621/mt) ex-stock actual weight, including 13% value added tax, up Yuan 52/mt on the day.

          In seaborne market, most buyers in Singapore were holding wait-and-see moods due to high stocks.

          Several deals were concluded between fabricators, while the import sales from mills were yet to be heard. The lowest offer was heard lower than $585/mt CFR Singapore for Malaysian rebar September shipment, for a large volume. The price is equivalent to $590-$595/mt after normalizing for the shipment timing and quantity to Platts assessment standard.

          A rebar fabricator source in Singapore stated that they were "not active," with "enough inventory at least for the next quarter." A second fabricator source stated that they heard "small stockists bought around $640/mt", but the trade was confirmed to have occurred several weeks ago by the seller.

          Offer for October shipment was heard at $630/mt CFR Singapore theoretical weight for open origin which was not a tradeable value for buyers to accept.

          Mills were mostly offering for September shipment as they have cargos for sale. Offer for Vietnamese rebar was heard at $600/mt FOB Vietnam actual weight, unchanged on a day, said a Vietnam-based mill source.

          Platts assessed the 16-32 mm BS4449 Grade 500 rebar price increased by $3/mt at $594/mt CFR Southeast Asia, while the Chinese export 16-20mm diameter BS500B grade rebar was up $4/mt at $585/mt FOB China.

          Separately, Asian billet prices increased on the improving sentiment in seaborne market.

Buying indication in China was heard at $490-$500/mt CFR China for open origin. No deal was heard during the day as most offers were still much higher than bids besides the Iranian and Russian cargos, said a China-based trader.

          Domestic billet prices in China up Yuan 50/mt to Yuan 3,750/mt ex-stock Tangshan for Q235 billet material during the Platts Market on Close assessment, while the China-imported 3SP 150 mm spot billet up by $6/mt to $501/mt CFR China.

          Buyers in the Philippines made inquiries for billet prices but did not extend firm bids, said a Russia-based trader who added that "China [prices] dropped too much these days," echoing cautious sentiment among Philippine market participants.

          Southeast Asia billet 5SP 130mm spot billet price up $1/mt to $520/mt on Aug. 5.


Source : Steel Business Briefing

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