Domestic rebar prices have increased in Malaysia, Kallanish notes. A shortage of supply in the country is the main cause, market sources say.
Rebar prices have increased to RM 2,350/tonne ($560/t) delivered to-site for 20mm diameter base rebar, up from less than RM2,000/t in early July.
Premiums for the smaller rebar sizes are prevailing at RM 200/t for 10mm diameter and RM 150/t for 12mm diameter, both are up RM 50/t from early July.
“Local prices were at lows in early-July which led to mills switching to the export markets,” a mill manager in Kuala Lumpur says. He heard that some mills also reduced production capacities, noting that the shortage for the smaller sizes is more severe.
A dominant Malaysian mill, which has been supplying by truck to the Singapore market, is heard to be undertaking a month-long maintenance shutdown of its blast furnace starting from mid-September and this has curtailed supply to Singapore.
Buyers were previously buying smaller tonnages from the mill and therefore did not accumulate stocks.
Offers from the Malaysian mill are currently around $500/t dap (trucked to) Singapore for November deliveries. The dap basis price is estimated to be $5-10/t higher than on a cfr Singapore basis.
Standard offers for Chinese rebar, earliest for October shipment, are currently at $495-500/t with 30% small size rebar of 10/13mm diameter rebar. Some say that Chinese suppliers are withdrawing offers.
The shortage for smaller-sized rebar has spread to Singapore. “Everyone is scrambling for the smaller sizes of 10mm and 13mm. There are customers who will accept $520 or $540/t,” a trader says. The shortage started this month.
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $490/t cfr Singapore, up $10/t on week.
Source:Kallanish
