Southeast Asian buyers, especially those from Hong Kong, have been very active in import rebar purchases over the past week. Chinese exporters have been uncompetitive in the market due to the current prices and the expected tax rebate cut to zero. Accordingly, the majority of recent deals have been signed by other suppliers, from Turkey in particular, SteelOrbis has learned.
In total, 300,000-350,000 mt to over 350,000 mt have been booked to Singapore and Hong Kong, according to sources. About four to five cargoes of 50,000 mt each have reportedly been sold from Turkey, one lot from Qatar and also one deal for ex-Vietnam rebar, but the tonnage in the latter has not been disclosed.
One deal from Turkey to Singapore has been confirmed at $670/mt CFR on theoretical weight basis. In addition, ex-Qatar rebar has been traded to Singapore at $665-670/mt CFR, according to sources. Prices have increased compared to the previous deals done to Singapore from Turkey in the middle of March at $655/mt CFR. The price rise has been due to an increase in scrap costs as well as to the lack of competition in the Asian rebar market.
Buyers from Hong Kong have been even more active. Four deals from Turkey have been reported at around $680-690/mt CFR. Last week, a Turkish steel producer sold a 50,000 mt rebar cargo to Hong Kong at $672.5/mt CFR on actual weight basis for June shipment, as SteelOrbis reported earlier. In the same price range, one ex-Vietnam BF rebar lot has been traded to Hong Kong, according to market sources.
Ex-China rebar offer prices have been heard at $710-720/mt, FOB, for May shipment, moving up by $15/mt on average compared to March 26. “The unclear situation of the adjustments in the export tax rebate have caused steelmakers to be cautious and to hold a wait-and-see stance, while rising rebar futures prices and billet prices have pushed up export offer prices,” an international trader said. As a result, Chinese supplies have been difficult to export.
Average rebar spot prices in China have gained RMB 300/mt ($45.7/mt) week on week to RMB 5,017/mt ($765/mt) ex-warehouse, according to SteelOrbis’ information.
As of April 2, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,157/mt ($786/mt), increasing by RMB 223/mt ($34/mt) or 4.52 percent since March 26.
$1 = RMB 6.5649