ASEAN traders brace for longs price hikes
The Southeast Asian import markets for wire rod and rebar have been quiet this week, Kallanish notes. Prices are however creeping up despite the lack of trading activity. Many market participants are absent and will return next week following the Lunar New Year holiday.
Offers for low-carbon 6.5mm diameter SAE 1008 blast furnace wire rod from Indonesia were heard last week at $760/tonne cfr Manila. Several 10,000-tonne cargoes for April shipment were booked at $750/t cfr Manila. There are no offers this week, Manila traders say.
“All my counter-parties are still on holiday,” a trader says. These include those in China and Hong Kong. “Though most people appear to agree that the market is primed for an increase next week,” he adds. Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $750/t cfr Manila, up $2.5 on-week
Despite the quiet market in Thailand this week, Thai traders are hearing higher prices. Indian offers for 5.5mm diameter wire rod have risen to $800/t cif Thailand, but the Thai market has not accepted this price level yet, a Bangkok trader says. Last week, offers for Indian 5.5mm induction furnace wire rod were prevailing at $750-755/t cif Thailand.
Another says he heard of market chatter that Indonesian 5.5mm diameter electric arc furnace wire rod was booked for March shipment at below $760/t cif Thailand late last week. Offers for Malaysian and Indonesian 6.5mm blast furnace wire rod at that time were at $755/t cif.
There are also expectations that rebar import prices will lift in the region. “Prices keep increasing,” a trader in Singapore says. He believes offers for theoretical-weight rebar could be pegged at above $740/t cfr Singapore. Last week, a Singapore buyer booked a Turkish rebar bulk cargo at around $738/t cfr theoretical weight.
“China always starts with a price increase after the Chinese New Year holiday,” another Singapore trader says. “But it may be a short-term spike.” Kallanish maintained BS4449 500B 10-40mm diameter rebar at $735-738/t cfr Singapore theoretical weight.
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Anonymous
Very good overview of the weekly steel market.
Anonymous