Rebar import prices rebound in SE Asia
Export prices of Turkish-origin rebar to east Asia have rebounded recently. Offers to Singapore the week ending 12 June were up to $470-500/t cfr compared to $450-460/t cfr in the previous week. Turkish prices hit lows when a booking of some 30,000 tonnes of wire rod, debar-on-coil and debar-in-straight length was made around two-three weeks ago at $440-445/t cfr Singapore. Traders are unable to explain the change in the Turkish rebar pricing. "I don't understand why they sold so low before. There was no other material being offered at that low price," a trader in Hong Kong says, suggesting the supplier was "hungry and had to do the business." The current pick-up in Turkish rebar prices could be due to better sentiment, weak US dollar, and expectations that scrap prices will be firm, he says. Improved flat steel markets have an impact on imported scrap because Chinese imported scrap is used to as feed in Chinese blast furnace production, he explains. Offers from Korea are prevailing at $460/t cfr Singapore and Hong Kong; from China, offers are believed to be prevailing at $480-490/t fob. "The rebar markets in most countries in east Asia are still quiet," a regional trader in Singapore notes. He says that there is still sufficient inventory in the regional markets and importers are not in a hurry to book material.
Korean domestic rebar prices weaken amid low demand
Korean domestic rebar prices have continued dropping as demand lags with no significant sign of recovery. Limited quantities were offered as low as KRW 670,000/tone ($534/t) for 10mm diameter bars from some domestic producers but few if any transactions were made. "The price decrease is meaningless unless demand recovers in the market," a Seoul-based trader tells Steel Business Briefing. Hyundai Steel, Korea's leading rebar producer, cut its domestic list prices for rebar by KRW 70,000/t ($56/t) from 1 June, and other makers reduced their prices in line with the large mini-mill. Hyundai's list price of rebar is now at KRW 761,000/t ($607/t) for 10mm diameter bars for direct supply to contractor, as SBB reported. While sales of most long products such as H-beams remain sluggish, those of rebars seem slightly better. Another rebar trader warns that this may cause an oversupply of rebar in the domestic market as producers maintain capacity utilization as high as 80-90% to make profits from rebar sales. "However, it might lead to an inevitable price cut by rebar producers later," he adds. Meanwhile, recent imports of Taiwanese-origin rebar are also believed to have contributed to lower domestic rebar prices, a Busan-based dealer tells SBB. "At the beginning of this month about 8,000-10,000t of rebar booked at $490/t cfr arrived from Taiwan," he says, adding that rebar producers and distributors began clipping their prices in competition in the weeks since.
Scrap prices into east Asia recover after recent softening
Scrap import prices in east Asia have moved up by $5-10/tonne and reversed the downtrend, particularly for containerised scrap, seen in the past two weeks, trading sources tell Steel Business Briefing. Containerised heavy melting scrap (HMS) 1&2 80:20 was booked at $270-275/t cfr Southeast Asia and Taiwan last week. This is similar to transaction price levels seen in late May. "The Taiwanese returned to book (containerised) scrap because the importers noticed that prices are rising again, and they need material because their inventory is low," a regional trader says. He believes that constant buying by regional importers to replenish stocks .the financial crisis is dissuading mills from stock accumulation. would keep scrap prices "fairly stable or firm." Current offers of containerised 80:20 are prevailing at $275-280/t cfr, compared with booked prices in the previous week at around $260/t cfr Korea and $265-270/t cfr Southeast Asia. Recent Chinese import bookings also reflect higher prices. Shagang booked several cargoes of bulk shredded from USA at $300/t cfr last week, up $10/t from the previous week. Another Chinese mill booked bulk bonus grade scrap from USA at $313/t cfr. "There are not many offers in the market. Suppliers are saying that they can get higher prices in China and Turkey," a trader in Vietnam tells SBB. Japanese scrap export prices are also rising. Korea's Dongkuk Steel booked Japanese H2 grade scrap at ¥24,700/t fob ($252/t) last week, up by ¥1,200/t ($12) from the previous week, Korean trading sources tell SBB.
Export prices of Turkish-origin rebar to east Asia have rebounded recently. Offers to Singapore the week ending 12 June were up to $470-500/t cfr compared to $450-460/t cfr in the previous week. Turkish prices hit lows when a booking of some 30,000 tonnes of wire rod, debar-on-coil and debar-in-straight length was made around two-three weeks ago at $440-445/t cfr Singapore. Traders are unable to explain the change in the Turkish rebar pricing. "I don't understand why they sold so low before. There was no other material being offered at that low price," a trader in Hong Kong says, suggesting the supplier was "hungry and had to do the business." The current pick-up in Turkish rebar prices could be due to better sentiment, weak US dollar, and expectations that scrap prices will be firm, he says. Improved flat steel markets have an impact on imported scrap because Chinese imported scrap is used to as feed in Chinese blast furnace production, he explains. Offers from Korea are prevailing at $460/t cfr Singapore and Hong Kong; from China, offers are believed to be prevailing at $480-490/t fob. "The rebar markets in most countries in east Asia are still quiet," a regional trader in Singapore notes. He says that there is still sufficient inventory in the regional markets and importers are not in a hurry to book material.
Korean domestic rebar prices weaken amid low demand
Korean domestic rebar prices have continued dropping as demand lags with no significant sign of recovery. Limited quantities were offered as low as KRW 670,000/tone ($534/t) for 10mm diameter bars from some domestic producers but few if any transactions were made. "The price decrease is meaningless unless demand recovers in the market," a Seoul-based trader tells Steel Business Briefing. Hyundai Steel, Korea's leading rebar producer, cut its domestic list prices for rebar by KRW 70,000/t ($56/t) from 1 June, and other makers reduced their prices in line with the large mini-mill. Hyundai's list price of rebar is now at KRW 761,000/t ($607/t) for 10mm diameter bars for direct supply to contractor, as SBB reported. While sales of most long products such as H-beams remain sluggish, those of rebars seem slightly better. Another rebar trader warns that this may cause an oversupply of rebar in the domestic market as producers maintain capacity utilization as high as 80-90% to make profits from rebar sales. "However, it might lead to an inevitable price cut by rebar producers later," he adds. Meanwhile, recent imports of Taiwanese-origin rebar are also believed to have contributed to lower domestic rebar prices, a Busan-based dealer tells SBB. "At the beginning of this month about 8,000-10,000t of rebar booked at $490/t cfr arrived from Taiwan," he says, adding that rebar producers and distributors began clipping their prices in competition in the weeks since.
Scrap prices into east Asia recover after recent softening
Scrap import prices in east Asia have moved up by $5-10/tonne and reversed the downtrend, particularly for containerised scrap, seen in the past two weeks, trading sources tell Steel Business Briefing. Containerised heavy melting scrap (HMS) 1&2 80:20 was booked at $270-275/t cfr Southeast Asia and Taiwan last week. This is similar to transaction price levels seen in late May. "The Taiwanese returned to book (containerised) scrap because the importers noticed that prices are rising again, and they need material because their inventory is low," a regional trader says. He believes that constant buying by regional importers to replenish stocks .the financial crisis is dissuading mills from stock accumulation. would keep scrap prices "fairly stable or firm." Current offers of containerised 80:20 are prevailing at $275-280/t cfr, compared with booked prices in the previous week at around $260/t cfr Korea and $265-270/t cfr Southeast Asia. Recent Chinese import bookings also reflect higher prices. Shagang booked several cargoes of bulk shredded from USA at $300/t cfr last week, up $10/t from the previous week. Another Chinese mill booked bulk bonus grade scrap from USA at $313/t cfr. "There are not many offers in the market. Suppliers are saying that they can get higher prices in China and Turkey," a trader in Vietnam tells SBB. Japanese scrap export prices are also rising. Korea's Dongkuk Steel booked Japanese H2 grade scrap at ¥24,700/t fob ($252/t) last week, up by ¥1,200/t ($12) from the previous week, Korean trading sources tell SBB.
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