The rebar market in Singapore has slipped in tandem with a softening in China’s futures and physical markets earlier this week, Kallanish notes. Theoretical-weight rebar for July shipment from a leading Malaysian exporting mill is offered this week at $535/tonne delivered or trucked to Singapore, equivalent to $525-530/t cfr Singapore. These prices are for 10,000-tonne cargoes, with this week’s offer $5/t lower than the previous week.
“Prices came down this week. But buyers’ price idea is only at $525/t delivered,” a Singapore trader says.
Market sources report hearing of past orders of rebar from Qatar. A bulk vessel cargo for actual-weight rebar was booked last week at $540-545/t cfr Hong Kong. Three weeks ago, another similar cargo, but on a theoretical-weight basis, was sold at $540/t cfr Singapore. The cargoes are for 50,000 tonnes each.
The CFR price to Singapore is on a liner-out basis, which may explain why the spread between theoretical and actual-weight prices is narrowed, several Singapore importing sources say. Market sources speculate that the deal may have been a tactical move to ensure the security of supply from a different source, providing the buyer with more bargaining power. However, taking a large-vessel cargo may carry the risk of incurring more costs if there are delays in off-loading compared to trucked cargoes.
