Issue 26, 2024 - This week's editorial: Worldwide long steel consumption wanes. Prices decrease

Slow activity and a lacklustre market for long products are seen in Europe, Middle East, North Africa, Asia, and the US, resulting in occasionally declining prices. Rebar import prices continue to weaken in Singapore and Hong Kong, in tandem with market bearishness. Chinese rebar offers have also fallen due to slow demand last week. A trader hears that Chinese theoretical-weight rebar is being offered at $525/t cfr. At the same time, the ASEAN import market for wire rod weakened further last week, owing to market sluggishness. In Vietnam, bids are being invited for Q195 6.5mm-12mm diameter wire rod from China for July/August shipment at $505/tonne cfr Vietnam, compared to around $520/t cfr the previous week. Last week a leading Indonesian mill’s offer for 6.5mm low-carbon wire rod for August shipment was prevailing at $505/t fob, compared to around $515-520/t fob the previous week. 

Middle East and North Africa billet buyers have redirected their attention to the Far East due to workable prices there. Last week, rebar re-rollers in the United Arab Emirates received unsolicited offers for rebar grade 3sp billet, ex-China at $510-515/t cfr Abu Dhabi (liner out) and ex-Malaysia at $518/t cfr Abu Dhabi (liner out). By the end of last week, the UAE’s largest steel producer demonstrated its adaptability by closing a billet deal with a re-roller for 15,000t of 3sp rebar grade at $543/t ex-works for immediate shipment. This is down $7/t from its initial pre-Eid offer. 

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