Suppliers have reduced offer prices in a bid to secure import deals for long products in East Asia, market participants say. Buying interest has about evaporated as regional economic activity has slowed down. There are also bearish expectations for longs pricing as scrap prices sink.
Offer prices for rebar are prevailing at $410-415/tonne cfr Singapore, theoretical-weight basis, a Singapore trader says. He believes traders are making offers for June shipment at this level for material from Russia, Ukraine and Turkey. The suppliers for Chinese rebar, meanwhile, could consider selling at $420-425/t cfr, down from their targeted $440/t cfr but “…nobody is bidding,” he notes. Last week, Turkish rebar offers were heard at $430/t cfr, and Chinese rebar at $445/t cfr Singapore.
Some traders heard Turkish rebar offered at $405/t cfr Singapore theoretical weight. “There is no demand anywhere,” a Singapore trader says. Construction projects will be delayed in Singapore so no one is in a hurry to fulfill order contracts, says another. Singapore authorities are tabling a bill to give a six-month reprieve to those who cannot meet contractual obligations because of the virus outbreak, he notes.
In Hong Kong, after Russian rebar for June shipment was booked at $425/t cfr actual weight last week, another Russian rebar deal closed lower at $410/t cfr. An importer heard the lower-priced deal is for delivery over three months in the third quarter.
On Thursday, Kallanish lowered its weekly BS4449 500B 10-40mm diameter rebar price to $400-410/t cfr Singapore theoretical weight, down $27.5 on-week.
Similarly, wire rod demand is weak. Chinese wire rod offers are prevailing at about $445-450/t cfr Southeast Asia, a Chinese trader reports. There are also offers at $440/t cfr Southeast Asia but no buying interest, he says. In Thailand, Ukrainian wire rod is currently offered at $420/t cif Thailand, and Malaysian wire rod at $450/t cif Thailand. These offers are for 100% 5.5mm diameter wire rod, or combination 5.5/6.5mm diameter wire rod, a Thai trader says. But there is no buying, he adds.
There are no offers in the Manila market due to the Philippines’ lockdown. Kallanish lowered its SAE 1008 6.5mm diameter mesh-grade wire rod assessment to $430-440/t cfr Manila, down $20 on-week.