Daily Steel News - 4 May 09

Chinese rebar prices firm again

Chinese rebar prices have rebounded since 27 April following the declines in the latter half of the previous week. But some traders predict that prices may copy the earlier trend and drop in the beginning of May. "Demand will probably strengthen a little next month (May), but I don't expect it will be enough to hold the prices; market inventories are decreasing but production remains high," a Shanghai trader says. He adds that rebar prices could dip again, but by no more than RMB 100/t ($15/t). Another Shanghai trader says transactions have slipped from 29 April following an improvement in the first two days of the week. Prices will be under pressure if May sees large increases in new deliveries, he adds. Steel Business Briefing learns that prices in both Shanghai and Beijing increased by about RMB 100/t in the last week. Shanghai traders are offering RMB 3,280-3,300/t ($481-484/t) for 16-25mm for HRB335 and RMB 3,350-3,380/t for same sized HRB400. Meanwhile, Beijing prices for 16-25mm HRB335 have moved up to about RMB 3,500/t. All prices include 17% VAT. In line with the physical market, prices on the Shanghai steel futures market have also increased. The September rebar contracts closed at RMB 3,553/t on 30 April, compared with RMB 3,499/t on 27 April.

Little change in billet import prices to East Asia

Billet import transaction prices are holding at $410-420/tonnes cfr Southeast Asia, trading sources in the region tell Steel Business Briefing. There are not many offers in the market, traders say, and at the same time regional buyers are reluctant to pay the higher asking prices sought by suppliers. "Buyers don't want to pay the price because nobody knows where the price is," a trader in Vietnam says. While billet of Malaysian and Taiwanese origin is offered at $415-420/t cfr to the region, some traders report that mills from these countries are also pushing for higher export prices of $425-430/t cfr to the region including Vietnam. Taiwanese importers booked 30,000-40,000 t of various grades of blast furnace billet .wire rod-making, carbon and vanadium-added billet . from Japan at $390-396/t cfr around two weeks ago. A cargo of 5,000 t of Japanese origin SD390 billet was booked more than a week ago at $410/t cfr Haiphong, a Vietnamese trader reports. The import market in the Philippines is quiet, local traders tell Steel Business Briefing. "The users here are fully covered until July," says a trader in Manila who describes demand as having "slowed down". The last deal was a booking for Taiwanese billet at $405/t cfr made earlier this month.

Offer prices to East Asia for containerized scrap jump

Offer prices for containerised scrap imports have risen in east Asia. At around $260/tonne cfr, containerised scrap offers are higher-priced than bulk scrap which last concluded at $255/t cfr Korea for HMS 1. "I've had no bookings for the last three weeks because scrap prices are moving up fast," a Vietnamese scrap trader tells Steel Business Briefing. He says that offers of containerised mixed ferrous scrap cargo of 80:20 heavy melting scrap (HMS) 1/2 and shredded are at $285-290/t cfr whereas bids are at $270/t cfr for 80:20 and $275/t cfr for shredded. Another says he has heard that containerised scrap was booked at $270/t cfr Vietnam whereas offers are now at $280-285/t cfr for 80:20. Offers of containerised shredded are prevailing at $280/t cfr Malaysia. However, importing sources claim that they booked a small lot at $255-260/t cfr last week. In Taiwan, those that needed material recently booked containerised 80:20 material at $260-265/t cfr. "Buyers are generally resisting these higher scrap prices, at least for the short term," a Taiwanese trader says. He notes that certain mills, such as Feng Hsin Iron & Steel, preferred to book Russian pig iron at $275/t cfr instead. The Taiwanese are expected yield to higher scrap prices if the rising price trend continues. In Korea, no offers of bulk scrap are heard because of recent bookings which will see a large volume of bulk scrap arriving in May and June. This week Hyundai Steel booked Japanese H2 grade scrap at ¥23,200/t ($237) fob. "Japanese scrap suppliers are asking for more than ¥24,000/t but the Korean mills are in no hurry to book because of the inflow of scrap after Golden Week," a trader in Seoul says.