SE Asian longs markets slip on poor sentiment
Southeast Asian import markets for wire rod and rebar weakened during the past week, Kallanish notes. Offer prices from China were slipping but cannot compete with low-priced material from elsewhere.
In Singapore, importers including smaller buyers purchased rebar a week ago either from Qatar or Turkey at $470/tonne cfr theoretical-weight basis, for October shipment, Singapore trading sources report. A trader is selling at this level because it is eager to offload its position material. A trader heard of some tonnages booked, but another says buying is thin because many buyers are bearish and are giving bids as low as $450/t cfr Singapore. Direct offers from Turkish mills are at $480-485/t cfr, Kallanish understands.
Chinese rebar offers are prevailing at $485-495/t cfr Singapore, down from last week’s $495-500/t cfr. “There is a slowdown in China but Chinese suppliers are saying that they will not consider anything below $480/t cfr for now,” a Singapore trader says. Chinese steel prices would depend on iron ore prices too, he adds.
Kallanish assessed its weekly BS4449 500B 10-40mm dia rebar price on Thursday at $470/t cfr, down $10/t on-week.
Buyers in the Philippines have been slow to book long products because of the rainy season and negative market sentiment. Malaysian mesh-grade 6.5mm diameter wire rod offer prices are still at $480/t cfr Manila, similar to last week. Chinese wire rod offers have fallen to $510/t cfr Manila. A sole Manila trader is also heard to be offering at $500/t cfr. Last week, Chinese wire rod was offered at $515-520/t cfr.
A trader heard from a buyer that Indian wire rod is offered at $470/t cfr Manila. Offers at this level are possible, two Indian traders say. The steel market is currently weak in India, a trader says (see separate report).
SAE 1008 6.5mm diameter mesh-grade wire rod was lowered by Kallanish on Thursday to $480/t cfr Manila, down $5/t on-week.
Truly global, user-friendly coverage of the steel and related markets and industry that delivers the essential information quickly while delivering on most occasions just the right amount of between-the-lines comment and interpretation for a near real time news service of this kind.
Anonymous
Very good overview of the weekly steel market.
Anonymous