Rebar prices to SE Asia move up, but local resistance
Offer prices for rebar to Southeast Asia have risen due to the continued strength in scrap prices, trading sources tell Steel Business Briefing. But importers in Singapore and Hong Kong are generally unwilling to pay above $500/t cfr because there is little change in demand in their home markets. In fact there are very few offers heard in this regional market, which normally receives supplies from Korea and Taiwan. Taiwanese trading sources tell SBB that the mills there would be aiming to export their rebar at around $500/t fob. Meanwhile offers from Turkey have risen to $525-540/t cfr, compared to just under $500/t cfr in mid-July. "Some suppliers are raising their export prices because they think that China will be a good market for their bar," a Singapore trader says. The Chinese domestic rebar market has moved up strongly recently, "but there could be some price correction soon," he adds. Traders say the domestic price in Singapore is around S$760/t delivered-basis ($530/t), which provides little incentive to import rebar.
Turkish mills turn to Asia for price support
Turkish mills are reported to be sending billet mainly to the Far East as demand is generally low in the Middle East. Transactions are reported to be at around $480-485/tone cfr Asia. Two cargoes of 40,000t of billet are reported to have been shipped to Far East customers, helping to create a "feasible" price level for Turkish mills, market sources tell Steel Business Briefing, but they are not particularly happy about the price level. One producer says that given the high price of scrap imports, they expected to find customers at $450/t fob, but the market could only achieve $435/t fob. Some demand is reported from Saudi Arabia, with 50,000t of billet booked by Saudi mills, SBB learns. Also a cargo for Canada has been booked, a producer tells SBB. The market sees this business as a sign that cost-based price increases are more likely to be accepted by the international markets, and that demand might recover after Ramadan. One trader tells SBB that scrap has been booked by Turkish traders in the expectation that rebar demand would recover after Ramadan, and that prices are not likely to go down from the current level. Turkish rebar offers are at $485-500/t fob, and some mills are reported to have concluded sales for $500/t fob.
Scrap import prices continue to rise as supply tightens
Imported scrap prices to east Asia rose during the week ending 7 August, trading sources tell Steel Business Briefing. Three cargoes of US scrap, for September and October shipment, were booked at a composite price of $350/tonne cfr eastern China. The cargoes were split equally (50:50) with 80:20 heavy melting scrap (HMS) 1/2 and shredded. The Chinese booked an estimated 30,000 tonnes of Japanese origin HS (plate & structural) at $365-370/t cfr during the same week, up from $350/t cfr previously. "Chinese buying may be slowing down," a trader in China tells SBB. New offer prices have risen to $380/t cfr. Suppliers are holding back offers of bulk HMS scrap, market sources in Southeast Asia say. Traders in the region report hearing of a bulk shipment of scrap from Europe to Malaysia at a composite price of $345/t cfr, concluded in the last week of July. This is believed to have comprised 15,000 t of 80:20, 10,000 t of shredded, 5,000 t each of HMS 1 and 5,000 t of P&S. Offers of containerised US scrap to Taiwan are prevailing at $325/t cfr Taiwan and for shredded, $330-335/t. A trader reports there are bookings but SBB is unable to confirm. In Vietnam, shredded-in-container from USA/Europe is being offered at $335-340t/cfr. A local trader, who says that he has a bid at $330/t cfr for this, believes that scrap prices will not soften in the near future. "There is a big shortage. Prices are rising and there is still buying," he tells SBB.
62% iron ore reference price exceeds $100/t: The Steel Index
The latest daily iron ore reference prices released by The Steel Index last Friday (7 August) show that the price for 62% Fe has passed the $100/tonne cfr level. The reference price for 62% Fe content Iron Ore fines finished the week at $104.10/dry metric tonne CFR Tianjin port, China. This was a $8.80/dmt, or 9.2%, increase from a week earlier, and is 28% above the level a month ago. Within these delivered prices, the average weekly freight costs for all three key iron ore routes to China are reported to have slipped. The Steel Index is majority-owned by Steel Business Briefing and specialises in compiling steel and iron ore reference prices based on actual transaction data. Further details of the methodology and specifications for the two grades of iron ore can be found on the website www.thesteelindex.com. Companies wishing to subscribe to the full set of reference prices or apply to submit iron ore or steel price data can do so on the website.
Offer prices for rebar to Southeast Asia have risen due to the continued strength in scrap prices, trading sources tell Steel Business Briefing. But importers in Singapore and Hong Kong are generally unwilling to pay above $500/t cfr because there is little change in demand in their home markets. In fact there are very few offers heard in this regional market, which normally receives supplies from Korea and Taiwan. Taiwanese trading sources tell SBB that the mills there would be aiming to export their rebar at around $500/t fob. Meanwhile offers from Turkey have risen to $525-540/t cfr, compared to just under $500/t cfr in mid-July. "Some suppliers are raising their export prices because they think that China will be a good market for their bar," a Singapore trader says. The Chinese domestic rebar market has moved up strongly recently, "but there could be some price correction soon," he adds. Traders say the domestic price in Singapore is around S$760/t delivered-basis ($530/t), which provides little incentive to import rebar.
Turkish mills turn to Asia for price support
Turkish mills are reported to be sending billet mainly to the Far East as demand is generally low in the Middle East. Transactions are reported to be at around $480-485/tone cfr Asia. Two cargoes of 40,000t of billet are reported to have been shipped to Far East customers, helping to create a "feasible" price level for Turkish mills, market sources tell Steel Business Briefing, but they are not particularly happy about the price level. One producer says that given the high price of scrap imports, they expected to find customers at $450/t fob, but the market could only achieve $435/t fob. Some demand is reported from Saudi Arabia, with 50,000t of billet booked by Saudi mills, SBB learns. Also a cargo for Canada has been booked, a producer tells SBB. The market sees this business as a sign that cost-based price increases are more likely to be accepted by the international markets, and that demand might recover after Ramadan. One trader tells SBB that scrap has been booked by Turkish traders in the expectation that rebar demand would recover after Ramadan, and that prices are not likely to go down from the current level. Turkish rebar offers are at $485-500/t fob, and some mills are reported to have concluded sales for $500/t fob.
Scrap import prices continue to rise as supply tightens
Imported scrap prices to east Asia rose during the week ending 7 August, trading sources tell Steel Business Briefing. Three cargoes of US scrap, for September and October shipment, were booked at a composite price of $350/tonne cfr eastern China. The cargoes were split equally (50:50) with 80:20 heavy melting scrap (HMS) 1/2 and shredded. The Chinese booked an estimated 30,000 tonnes of Japanese origin HS (plate & structural) at $365-370/t cfr during the same week, up from $350/t cfr previously. "Chinese buying may be slowing down," a trader in China tells SBB. New offer prices have risen to $380/t cfr. Suppliers are holding back offers of bulk HMS scrap, market sources in Southeast Asia say. Traders in the region report hearing of a bulk shipment of scrap from Europe to Malaysia at a composite price of $345/t cfr, concluded in the last week of July. This is believed to have comprised 15,000 t of 80:20, 10,000 t of shredded, 5,000 t each of HMS 1 and 5,000 t of P&S. Offers of containerised US scrap to Taiwan are prevailing at $325/t cfr Taiwan and for shredded, $330-335/t. A trader reports there are bookings but SBB is unable to confirm. In Vietnam, shredded-in-container from USA/Europe is being offered at $335-340t/cfr. A local trader, who says that he has a bid at $330/t cfr for this, believes that scrap prices will not soften in the near future. "There is a big shortage. Prices are rising and there is still buying," he tells SBB.
62% iron ore reference price exceeds $100/t: The Steel Index
The latest daily iron ore reference prices released by The Steel Index last Friday (7 August) show that the price for 62% Fe has passed the $100/tonne cfr level. The reference price for 62% Fe content Iron Ore fines finished the week at $104.10/dry metric tonne CFR Tianjin port, China. This was a $8.80/dmt, or 9.2%, increase from a week earlier, and is 28% above the level a month ago. Within these delivered prices, the average weekly freight costs for all three key iron ore routes to China are reported to have slipped. The Steel Index is majority-owned by Steel Business Briefing and specialises in compiling steel and iron ore reference prices based on actual transaction data. Further details of the methodology and specifications for the two grades of iron ore can be found on the website www.thesteelindex.com. Companies wishing to subscribe to the full set of reference prices or apply to submit iron ore or steel price data can do so on the website.
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