The sentiments in Southeast Asia’s import rebar market have been confirmed as being weak since China’s market has been very disappointing in April, with the outlook still negative for the short term. According to sources, customers in Asia have cut bids again after two deals for ex-ASEAN rebar were done at lower levels over the past ten days.
One contract for 25,000 mt of ex-Vietnam rebar from a major mill was done to Singapore at $630/mt CFR theoretical weight last week. “There are offers at this level from Malaysia too, so this level is already not attractive for customers,” a source said. After prices softened by $15-20/mt in the latest deal, buyers from Singapore have been accessing the market price at not above $620/mt CFR and some sources said that even this level would hardly attract demand.
Another deal for 20,000 mt from the same mill was signed to Hong Kong at $640-645/mt CFR actual weight.
The tradable level for ex-China rebar has slipped further by $10/mt early this week to $580-590/mt FOB on actual weight, signaling that the situation in the Chinese market remains weak.
Ex-ASEAN rebar has been more competitive in Southeast Asia recently with Middle East-based sellers not being so active. “The recent bids are too low for mills from the GCC. Moreover, it is Ramadan now, so activity is lower in both demand and production,” a source told SteelOrbis.