Price Surge Amid Year-End Weakness
The rise in Chinese steel futures earlier this week prompted suppliers to raise offer prices for imported rebar in Singapore and Hong Kong. However, buyers remain skeptical about these price hikes, citing the typically weak year-end market conditions.
Singapore Market Updates
- Malaysian Mill Offers: A leading Malaysian blast furnace mill increased its offer for theoretical-weight rebar (January/February shipment) to $500-505/t dap Singapore, up from $490/t dap last week.
- The dap Singapore price is estimated to be $5-10/t higher than the cfr Singapore price.
- Chinese-Origin Offers: Offers for Chinese theoretical-weight rebar for February shipment reached $520/t cfr Singapore, a $20/t increase from last week.
- Market Sentiment: A local trader mentioned, “Everybody will wait because they know prices will likely go down in the next one to two weeks.” Demand remains slow, and weak business confidence in China contributes to the cautious market.
Hong Kong Market Highlights
- Actual-Weight Offers: Offers for actual-weight rebar of open origin range from $510-515/t cfr, a $10 increase from last week.
- Limited Interest: Despite the short-term price hike, local buyers expressed little interest in purchasing. The increase is attributed to positive news from China’s Politburo meeting, which focused on boosting consumption and domestic demand.
Rebar Price Assessments
- Singapore: BS4449 500B 10-40mm diameter rebar is assessed at $485/t cfr Singapore (theoretical weight), up $2.5/t from last week.
- Hong Kong: Actual-weight offers continue to hover around $510-515/t cfr, reflecting a steady $10 increase.
Market Insights
The recent price increases for imported rebar are influenced by speculative activity in China’s futures market and optimism following policy announcements. However, subdued demand in Singapore and cautious sentiment in Hong Kong suggest that the market may remain under pressure in the near term. Buyers are likely to adopt a wait-and-see approach as they anticipate potential price corrections.
