Asian seaborne billet and rebar prices edged lower on Oct. 14, pressured by persistent weak demand and falling Chinese futures.
Chinese domestic futures fell for the second consecutive day of the week on Oct. 14, driven by market caution over recent US-China trade tensions, bearish macroeconomic conditions and subdued domestic demand.
The recent announcement of additional port fees by the US and China on ocean shipping firms was heard to have limited immediate impact on Asian seaborne billet freight rates, according to market participants.
In Tangshan, the tradable value for Q235 billet was heard at Yuan 3,000/mt, down Yuan 20/mt day over day, a China-based trader said. In Beijing, the tradable value for HRB400 18-25 mm rebar fell Yuan 20/mt day over day to Yuan 3,080/mt, according to another China-based trader.
Spot domestic rebar transaction activity in Beijing was heard to be quiet, with building materials inventory levels rising week over week. Limited downstream demand was heard to have contributed to slower post-holiday inventory clearing, the trader added.
Platts assessed Chinese domestic Q235 billet at Yuan 3,000/ mt on a Tangshan ex-stock basis, down Yuan 20/mt day over day.
Platts assessed the domestic Beijing HRB400 18-25 mm rebar spot price at Yuan 3,080/mt ex-stock, down Yuan 20/mt day over day.
In the seaborne billet market, spot prices were heard moving lower day over day on the back of declining domestic Chinese futures and limited buying interest.
Chinese 3sp 150mm billet offers were heard to have lowered to $430/mt FOB China day over day, with bids heard at $420/ mt FOB China. Meanwhile, an Indonesia-based mill was heard to have lowered its 3SP 150mm billet offer by $2/mt day over day to $433/mt FOB Indonesia for December shipment.
Indicative offers for Chinese 5SP 130mm billets were heard ranging between $450-$460/mt CFR Manila on Oct 14, with indicative bids heard at $440-$445/mt CFR Manila and tradable value heard at $450/mt CFR Manila.
Amid the current bid-offer gap, some Manila-based buyers were heard largely on the sidelines, awaiting greater price clarity after recent deals concluded last week. Two Chinese-origin billet deals were heard concluded Oct. 11 at $445/mt CFR Manila for 3SP 150 mm billet and $450/mt CFR Manila for 3SP 130 mm billet.
Platts assessed the Chinese export 3SP 150 mm billet at $426/mt FOB China, down $2/mt day over day. The 5SP 130 mm billet was assessed at $450/mt CFR Manila, also down $2/mt on Oct. 14.
“There doesn’t seem to be much upside for billet prices now. October and Q4 in general typically see better demand before winter, but ongoing international trade policy developments are dampening sentiment,” a Singapore-based trader said.
Market participants were heard monitoring the upcoming Fourth Plenary Session for potential policy support. However, traders noted that any stimulus announced under the five-year plan may have a limited immediate impact on spot prices, with short-term effects likely sentiment-driven.
Seaborne rebar prices also softened amid weak Chinese futures and subdued downstream demand. In Singapore, a wide bid-offer gap was heard, with indicative offers below $475/mt CFR Singapore and bids at $440-$460/mt CFR Singapore.
In Hong Kong, weak downstream demand contributed to thin liquidity. Indicative offers for Chinese rebar were heard at $475- $485/mt CFR Hong Kong.
Platts assessed the 16-32 mm BS4449-grade 500 rebar at $469/mt CFR Southeast Asia on Oct. 14, down $1/mt from the previous day.
Platts assessed the Chinese export 16-40 mm diameter BS500B-grade rebar at $461/mt FOB, down $2/mt day over day over the same period.
