Average offer prices for ex-China wire rod have moved sideways over the past week amid slight rises in rebar futures prices, while mills in the ASEAN region have cut offers to accelerate sales.
Offers for ex-China wire rod from second-tier mills have been heard at $465-475/mt FOB, remaining stable on average compared to last week, while reference deal prices have been heard at $465/mt FOB. During the given week, wire rod prices in the Chinese domestic market have rebounded amid increasing rebar futures prices. The US announced an interest rate cut of 50 basis points on September 19, exerting a positive impact on commodity prices. Market players think that there will be more room for policymakers to ease monetary policy, which will positively affect the wire rod market. Furthermore, downstream users in China are anticipated to build up stocks ahead of the National Day holiday (October 1-7). It is expected that wire rod prices in the Chinese domestic market will edge up in the coming week.
Offer prices of Indonesian wire rod have been heard at $465/mt FOB, decreasing by $10/mt compared to last week, while offer prices of ex-Malaysia wire rod have been heard at $460/mt FOB, declining by $7.5/mt on average. Export offer prices from Vietnam’s Hoa Phat have been heard at $480/mt FOB, decreasing by $5/mt on average.
As of September 19, rebar futures at Shanghai Futures Exchange are standing at RMB 3,206/mt ($451.5/mt), increasing by RMB 21/mt ($3.0/mt) or 0.66 percent since September 12, while up 1.14 percent compared to the previous trading day, September 18.
$1 = RMB 7.0983