The price for imported rebar in Singapore fell during the week to Monday May 24 due to turnaround in market sentiment and spot prices in China, market sources said.
Buyers have been skittish amid falling steel prices in Asia, led by continual falls in China’s physical and futures market. There were no bids heard.
Prices in China have fallen continually from 6,000-6,030 yuan ($931-936) per tonne on May 12 to 5,100-5,150 yuan per tonne on May 20 before stabilizing on May 21.
Market sources expect more government policies to be announced in the near future and more price volatility in the Chinese market, due to recent comments by Chinese Premier Li Keqiang on more cooling measures for overheated commodity markets.
“Buyers are unlikely to go into the spot market at this point in time because spot prices are falling, and there’s no telling when the falls will stop,” a Singaporean buyer told Fastmarkets on Friday May 21.
Buyers looking for domestic supply have also not been submitting inquiries, preferring to wait for clearer price trends before making any purchasing decisions.
The declines in Asian scrap prices have also caused sentiment to sour.
Yet Turkish mills increased their offers to $820-850 per tonne cfr Singapore on a theoretical weight basis for back-to-back cargoes due to their stable raw material ferrous scrap prices.
Turkish steel mills had last purchased imported heavy melting scrap (HMS) 1&2 (80:20) cargoes at $507.50 per tonne cfr, largely stable from their previous transactions.
There remained Indian position cargoes offered by traders at $780 per tonne cfr Singapore on a theoretical weight basis. There was a transaction heard concluded at $775-780 per tonne cfr Singapore for Indian rebar.
There was market chatter of offers for 25,000 tonnes of Middle Eastern rebar at lower prices, although this could not be confirmed directly by counterparties.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) import, cfr Singapore, which mainly looks at cargoes sold into Singapore on a theoretical-weight basis, was $775-780 per tonne cfr on Monday, a decrease of $15-20 per tonne from $790-800 per tonne cfr Singapore a week earlier.
Wire rod ***
Chinese wire rod was offered at $850-860 per tonne cfr Philippines, which market participants said were traders’ position cargoes.
A Malaysian steel mill had initially offered cargoes at $850 per tonne fob, which is equivalent to $880 per tonne cfr Philippines, before revising its offer down to $805 per tonne fob, which is equivalent to $835 per tonne cfr Philippines.
A major Indonesian steel mill was offering cargoes at $850 per tonne cfr Philippines. There were also offers at $840 per tonne cfr Philippines.
Some buyers were indicating interest at below $820 per tonne cfr Philippines, although some have not appeared in the spot market.
Market sources estimated spot prices at $820 per tonne cfr Philippines.
Fastmarkets’ weekly price assessment for steel wire rod (low carbon) import, cfr Southeast Asia, which mainly focuses on low-carbon mesh-quality material sold to the Philippines, was at $820 per tonne on Monday, falling by $10-20 per tonne from $830-840 per tonne cfr in the previous week.
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