Average offer prices for ex-China wire rod have edged up slightly over the past week amid rises in iron ore and futures prices, while not-too-low prices for non-VAT wire rod from China have also been seen in the market. However, ASEAN mills have been trying to push some volumes overseas, which is why their deal prices have again declined, by $3-5/mt over the past week. The market expects some rebound in offer prices next week.
Offers for ex-China wire rod from second-tier mills have been heard at $505-520/mt FOB, edging up by $2.5/mt on average compared to last week, while reference deal prices have been heard at $500-515/mt, FOB, mainly for non-VAT wire rod.
During the given week, the widespread heavy rainfall in eastern China have gradually stopped, while the floods in many regions of China have also eased, exerting a positive impact on the demand for wire rod. At the same time, some steel producers using electric furnaces have halted production, bolstering wire rod prices to a certain degree, though blast furnace-based steel mills’ outputs have also declined, though still being at relatively high levels, which may limit the rises in wire rod prices. It is thought that wire rod prices in the Chinese domestic market will edge up slightly in the coming week amid the rebound of rebar futures prices, according to market sources
Wire rod offer prices from Indonesia’s Dexin have been heard at $500-510/mt FOB, decreasing by $5/mt on the lower end from last week, while offer prices of ex-Malaysia wire rod have been heard at $500-505/mt FOB. A deal for ex-Indonesia wire rod has been done at $500/mt FOB, down by $3/mt from the contract last week. Also, some ex-Malaysia wire rod has been traded at the same level, according to sources. Offer prices from Vietnam’s Hoa Phat have been heard at $510/mt FOB, edging down by $5/mt on average.
In the import wire rod market in Southeast Asia, the reference price has increased, reflecting the movements in China. For instance, ex-China Q195 wire rod offers have been at $515-520/mt CFR Manila, while last week a deal at $510/mt CFR was done for the same material to Southeast Asia. Ex-ASEAN material has also been quoted at $520/mt CFR.
As of July 4, rebar futures at Shanghai Futures Exchange are standing at RMB 3,616/mt ($507/mt), increasing by RMB 81/mt ($11.4/mt) or 2.3 percent since June 27, while up 0.86 percent compared to the previous trading day, July 3.
$1 = RMB 7.1305