Asian rebar and billet prices fell on March 23 amid a weakened demand in China and low downstream margins, sources said.
Chinese rebar futures slipped on March 23, with the most actively traded rebar May 2023 contract on the Shanghai Futures Exchange closing at Yuan 4,070/mt ($596/mt), down Yuan 83/mt day on day.
The gloomy apparent consumption this week had cast doubt on the consistency of the “high supply, high demand” scenario, sources said. Some Chinese traders believed that the apparent consumption took the export demand into account. Moreover, some mills chose to sell more ex-work cargoes, which were not counted in the apparent consumption, they added. Some other traders, at the same time, believed that the sandstorm in North China and the heavy rain in South China were the reason behind weakening demand.
Rebar exporters were still reluctant to offer officially. Middle Eastern rebar was heard offered at $660/mt CFR Hong Kong, with a bid heard at $640/mt CFR Hong Kong. Meanwhile, another Middle Eastern mill was heard offering at $650/mt CFR Singapore.
A Singapore-based trader stated that they were more interested in forward contracts to be delivered during the end-year and next year.
Platts assessed the 16-32 mm BS4449 Grade 500 rebar at $648/mt CFR Southeast Asia, down $2/mt day on day. At the same time, the Chinese export 16-20 mm diameter BS500B grade rebar was down $2/mt at $644/mt FOB China over the same period.
The domestic Beijing HRB400 18-25 mm rebar spot price decreased by Yuan 72/mt to Yuan 4,175/mt ex-stock actual weight, including 13% value-added tax.
Meanwhile, 5SP 130 mm induction furnace billets were offered at $615/mt CFR Manila, although some positioned billet was also offered at $620/mt. According to sources, trade was muted, however, with no bids heard.
Some traders believed that as the Philippines mills only purchased billets in February and March, the demand is still on the way before the rainy season in June and July.
“[With] Indonesia in Ramadan and the Thai election taking place next month, the demand in Southeast Asia is therefore suppressed,” said a Singapore-based trader, adding that “the downstream margin is too low to have a good demand.”
Platts assessed the price of 5SP 130 mm billet on a CFR Southeast Asia basis at $624/mt.
Chinese domestic billet was down Yuan 20/mt at Yuan 3,910/mt on a Tangshan ex-stock basis for Q235 billet material. Traders were heard offering pre-sales billet at a Yuan 180 discount to rebar futures, but few deals were concluded.
Platts assessed China import 3SP 150 mm spot billet at $512/mt CFR China.
----S&P Global Commodity Insights.
