Longs exporters hike offers sharply in ASEAN
Rebar and wire rod exporters to ASEAN have raised offers in line with the surge in the Chinese steel futures market, Kallanish notes. Regional buyers continue to take stock of the price hikes because there has been no change in domestic demand.
A Malaysian mill’s offer for theoretical-weight rebar is prevailing at $550-555/tonne delivered by truck (dap), which would be equivalent to $545-550/t cfr Singapore. A week ago, its offers were at $545-550/t dap. Also last week, a 15,000-tonne cargo of actual-weight rebar from this mill was heard to have been concluded at $550-555/t cfr Hong Kong.
Prices are moving up, a Singapore importer says. But most buyers are monitoring and not active, he adds. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $540-545/t cfr Singapore theoretical weight, up $2.5 on-week.
Similarly, offers for imported wire rod have gone up in the region. Offers for Chinese mesh-grade 6.5mm diameter wire rod are up by $20/t from last week to $545-550/t cfr Manila. These offers are lower-priced than offers from the larger Chinese mills because they are generally believed to be shipped without full payment of VAT.
A Manila trader says he is not aware of any deals concluding over the last two weeks. “From where I sit, customers have been resisting higher prices,” he notes. Kallanish assessed SAE 1008 6.5mm-diameter wire rod at $530-535/t cfr Manila, up $10 on-week.
A leading Indonesian mill’s offer for low-carbon wire rod for end-December shipment has risen by $5/t from last week to $550/t fob. Freight between Indonesia and Philippines is at $20/t. A regional trader says the large Chinese steel mills’ offers for wire rod are also at the same level of $550/t fob.
In Thailand, Malaysian low-carbon blast furnace wire rod is offered at $555/t cif, up from the transacted $540/t cif on 6 November. “There are no bids because this price is at the same level as the domestic market,” a Bangkok trader observes. “Local scrap prices are quite low and steel demand is very slow. Also, the exchange rate is fluctuating a lot.”
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