The Asian billet and rebar markets showed mixed trends Sept. 3, influenced by weak Shanghai Futures Exchange prices and expectations of increased production due to favorable profit margins.
In China, rebar prices edged higher, while Southeast Asian billet prices fell, pressured by aggressive short selling.
In Tangshan, the tradable value for Q235 billet was assessed at Yuan 3,020/mt, unchanged from the previous day, with moderate transaction volumes.
In the Beijing rebar market, the tradable value for HRB400 18-25 mm rebar was reported at Yuan 3,160/mt, an increase of Yuan 10/mt from the previous day. However, transaction volumes were noted to be poor, reflecting limited buying interest despite the price increase.
A China-based trader said weak SHFE futures prices continued to weigh on market sentiment.
Market participants were closely monitoring the potential easing of environmental production restrictions following the conclusion of the military parade on Sept. 3. Traders anticipated that mills could increase production due to decent profit margins, potentially leading to oversupply.
Platts assessed Chinese domestic Q235 billet at Yuan 3,020/ mt on a Tangshan ex-stock basis, stable from the previous day.
Platts assessed the domestic Beijing HRB400 18-25 mm rebar spot price at Yuan 3,160/mt ex-stock, up Yuan 10/mt day over day.
In the export market, Chinese 3SP 150 mm billet offers were noted at $435/mt FOB China, remaining stable to the previous day.
Traders indicated that there is still room for price negotiations. Offers from BS500B-grade rebar were heard at $466/mt FOB China on an actual weight basis, while the tradable value was heard at $461/mt FOB China.
Platts assessed the Chinese export 3SP 150 mm billet at $433/mt FOB China, stable from the previous day.
The Manila billet market is reportedly experiencing aggressive short selling. Offers for 5SP 130 mm billets were heard at $450- $455/mt CFR Manila, with the most competitive offer declining by $5/mt compared to the previous day.
Platts assessed 5SP 130 mm billets at $449/mt CFR Manila, down $5/mt from the previous day.
In Singapore, traders reported no updated offers from China or Malaysia, with the last heard Chinese origin offer at above $480/mt CFR Singapore on Sept. 1. Tradable value was heard at $474/mt CFR Singapore.
Platts assessed the 16-32 mm BS4449-grade 500 rebar at $474/mt CFR Southeast Asia, stable from the previous day.
In Hong Kong, offers for Chinese-origin rebar were heard at $480-$485/mt on a CFR basis, remaining stable to the previous day. Local fabricators indicated that the market is likely to trade at a discount of at least $10/mt from the current offer levels.
Platts assessed the Chinese export 16-40 mm diameter BS500B-grade rebar at $463/mt FOB, up $2/mt day over day.
