The ASEAN rebar and wire rod import markets remain subdued, with limited activity reported on Thursday. Many buyers are still away following the year-end holidays, and traders expect trading volumes to pick up by next week. In Singapore, rebar import prices have softened, with traders offering theoretical-weight rebar at as low as $480 per tonne cfr for shipments by July. This is a noticeable drop from the $500 per tonne cfr prices observed two weeks ago.
A prominent Malaysian blast furnace mill is offering rebar at $485-490 per tonne dap (delivered to) Singapore, a decrease from $500 per tonne dap in late December. The dap price is generally $5-10 per tonne higher than the cfr Singapore basis. In Hong Kong, actual-weight rebar from China and Malaysia is now priced around $490-495 per tonne cfr, down $10 from the previous offers.
South Korean Rebar Enters Singapore Market
In a significant development, a South Korean mill has entered the Singapore market after receiving CARES certification in the previous year. The mill began offering theoretical-weight rebar at $485 per tonne cfr Singapore for February and March shipments. This move marks South Korea’s strategic entry into the Southeast Asian market as part of its effort to boost exports.
Traders anticipate that South Korea could increase its rebar and long steel exports to ASEAN this year, driven by weakness in the domestic Korean construction market, which has been sluggish for the past three quarters. A Seoul-based trader comments that the low domestic prices in Korea make it difficult to sell Chinese rebar within the country, suggesting a shift towards exporting more products.
While the domestic downturn in South Korea may prompt higher export volumes, these would primarily be on a spot basis. Additionally, the weak Korean won, exacerbated by ongoing political instability in the country, is seen as a favorable factor for exporters looking to stay competitive in the global market.
Price Trends in ASEAN Wire Rod Market
The ASEAN wire rod market has also experienced a softening. Offers for mesh-grade 6.5mm and larger diameter Chinese Q195 wire rod for February shipment are priced at around $470 per tonne cfr Manila, a decrease from $480-485 per tonne seen two weeks ago. As of now, no deals have been concluded.
In Manila, one trader mentioned that many customers would not return until Monday, leading to delayed transactions. There is speculation that these low-priced offers are Chinese exports that may be avoiding full VAT payment. In comparison, SAE 1008 6.5mm-diameter wire rod is being assessed at $465 per tonne cfr Manila, down $2.5 per tonne week-on-week.
In Thailand, Chinese wire rod offers for similar grades and sizes are priced at $485 per tonne cif, though the market remains quiet. A trader notes that trading activity in Thailand will likely pick up next week.
