Offer prices for ex-China wire rod have moved sideways over the past week as futures declines have slowed down, and some production cuts have been reported at major mills. This has resulted also in stable ex-ASEAN offers. SE Asian wire rod importers have taken a pause after latest purchases at lower prices.
Offers for ex-China wire rod from second-tier mills have been heard at $520-530/mt FOB, moving sideways on average compared to last week, while reference deal prices have been heard at $510-520/mt FOB and mainly for non-VAT offers. “In the Chinese domestic market, market players thought wire rod prices may edge down further as demand will slacken in the traditional offseason, while plum rain season in eastern China exerted a negative impact on construction activities. So, outlook for wire rod prices didn’t change,” an international trader said.
Wire rod offers from Indonesia’s Dexin have been heard at $520/mt FOB, remaining stable compared to last week, and the tradable level is $515/mt FOB. Ex-Malaysia and ex-Vietnam wire rod have been offered at $520/mt FOB and $520-530/mt FOB, also remaining unchanged on average over the week.
Demand for wire rod in the import market in Asia has been quiet in the given week, resulting in cautious sentiments prevailing among market players. After deals for ex-China Q195 wire rod at $522/mt CFR, at least one more deal was done at $525/mt CFR Manila. But after that buyers decided to wait. Offers for open origin Asian wire rod have been at $530-540/mt CFR to the Philippines and Thailand, almost stable over the week.
As of June 20, rebar futures at Shanghai Futures Exchange are standing at RMB 3,597/mt ($505/mt), decreasing by RMB 24/mt ($3.4/mt) or 0.66 percent since June 13, while down 0.85 percent compared to the previous trading day, June 19.
$1 = RMB 7.1192