Market sentiment for rebar in Singapore and Hong Kong has weakened this week, tracking the decline in steel futures in China, Kallanish reports. Optimism seen last week among suppliers about potential price increases, driven by anticipated expansionary measures from Beijing, has diminished. As a result, suppliers have lowered their offer prices.
A Vietnamese mill recently sold 30,000 tonnes of theoretical-weight rebar for February shipment to Singapore at $472/tonne. This transaction underscores sellers’ willingness to close deals below asking prices due to the subdued market conditions. The mill’s official price for actual-weight rebar was $525/t FOB, roughly $505/t FOB theoretical weight, with freight to Singapore adding around $20/t.
Regional Price Trends
In Singapore:
- A major Malaysian blast furnace mill offered theoretical-weight rebar trucked to Singapore at approximately $500/t DAP, slightly lower than last week’s $500-505/t DAP.
- DAP Singapore pricing remains $5-10/t higher than CFR Singapore rates.
- A trader offered at least 5,000 tonnes of theoretical-weight rebar for shipment by the end of February at $503/t CFR, though others considered this high for the current market. Offers have fallen to around $495/t or lower, with last week’s peak offers from China reaching $520/t CFR Singapore.
In Hong Kong:
- Offers for actual-weight rebar of open-origin (China or Malaysia) declined to $500-505/t CFR, down from last week’s $510-515/t CFR. This marks the second consecutive $10/t weekly drop.
- A Hong Kong buyer highlighted an influx of forward-shipment rebar cargoes contributing to the downward pressure.
Price Assessment
Kallanish assessed BS4449 500B rebar (10-40mm diameter) at $485-490/t CFR Singapore theoretical weight, showing a slight widening at the higher end of the range.
The ongoing bearish sentiment reflects buyers’ expectations of further price drops, alongside increased market supply.
