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Kallanish Kallanish

Knowledge matters Knowledge matters

November, 17th 2018

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OCT 04
10:49

Longs markets soften in SE Asia

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The longs markets in Southeast Asia have been dormant during the week, Kallanish notes. There has been little trading activity as importers have preferred to delay their buying.

Rebars from Turkey are priced at $530-540/tonne cfr Singapore theoretical-weight basis and offers from Qatar appeared to have dried up. Bids from importers are prevailing at $510-520/t cfr, according to Singapore-based trading sources.

Singapore importers can afford to wait, a Singapore trader says. There are six bulk cargoes, each around 50,000 tonnes, of rebar from Qatar and Turkey, booked earlier on for shipment up to December. Current offers are for January shipments.

BS4449 500B 10-40mm dia rebar assessment was assessed on Thursday at $530-535/t cfr, down from $2.5/t on week.

The import market for wire rod in Manila is similarly silent this week. This is to be expected as China is the main exporter of wire rod to Southeast Asia.

A Manila trader has heard of Chinese wire rod ordered last week at $585/t cfr. Another says that he did not hear about this booking but thinks that the buyer would lose money at this price. He was bearish on the market, and thinks that prices are softening. “But if buyers are in shortage of material, they have to buy,” he notes.

Some purchasers are bidding as low as $560-570/t cfr Manila. Chinese offers had been prevailing at $590-600/t cfr Manila last month but buying interest has been very muted.  

SAE 1008 6.5mm diameter wire rod assessed by Kallanish on Thursday was lower at $580-585/t cfr Manila, down $2.5/t on week.