Sluggish trade in rebar and wire rod continues in ASEAN

The trade in rebar and wire rod in ASEAN import markets continues to be sluggish. Volatility in the Shanghai Futures Exchange (SHFE) is causing regional buyers to delay their orders.

In the Philippines, offers for July shipment of 6.5 mm SAE 1008 wire rod are hovering around $530/ton cfr Manila. However, due to rising SHFE prices and the appreciation of the Chinese yuan, these prices are expected to increase further. SAE 1008 6.5 mm wire rod is assessed at $525/ton cfr Manila, with no changes reported throughout the week. According to trade sources, no deals were concluded for wire rod on a weekly basis. 

In Vietnam, new offers for wire rod from China are at around $525/ton cfr. Due to freight differences, offers in Vietnam are typically $10/ton lower than those in the Philippines. In Thailand, 2,000 tons of Chinese wire rod were traded at $538/ton cif. However, Bangkok traders are unsure whether the wire rod has circumvented VAT payments. 

In Singapore, trading activity for imported rebar is very limited. One of Malaysia's leading exporters kept its theoretical weight rebar offers unchanged for July shipment at around $535/ton for truck delivery to Singapore. This equates to $525-530/ton cfr Singapore for 10,000-ton cargo reservations, with higher prices being requested for smaller cargos. 

A Chinese producer lowered its theoretical weight rebar offer to $560/ton cfr Singapore, while another Chinese producer's offer remained at $560/ton fob. Singaporean traders noted that Chinese rebar cannot compete with Malaysian products. 

BS4449 500B rebar, 10-40 mm in diameter, was assessed unchanged at $525/ton cfr Singapore theoretical weight from the previous week. 

The sluggish trade in rebar and wire rod in ASEAN continues due to SHFE volatility and regional economic conditions. Prices for Chinese wire rod and rebar offers are fluctuating, and regional buyers and traders are navigating through uncertainties. The stability in regional prices is contributing to the ongoing sluggishness in trading activities.