Average offer prices for ex-China wire rod have seen declines over the past two weeks, following decreases in futures and softening of the local demand. At the same time, ex-ASEAN mills have kept prices at the same higher level, focusing on sales to the distant markets.
Offers for ex-China wire rod from second-tier mills have been heard at $520-540/mt FOB, moving down by $15/mt compared to June 15.
“During the given week, wire rod prices in the Chinese domestic market have moved down amid the increasing outputs and slack demand. Stimulus policies were being issued by Chinese policymaker, aiming to boost economic development, which bolstered market players’ sentiments in the steel market, while the decreasing trends seen in iron ore and coal prices weakened the support to steel prices from cost side. Buyers in the Asian market mostly held a wait-and-see stance in concluding purchases for wire rod,” an international trader said.
In Southeast Asia, offer prices of ex-China wire rod have been heard at $550/mt CFR, in line with the previous deals for ex-ASEAN material two weeks ago. But at the moment, most offers for ex-Indonesia and ex-Malaysia wire rod in the Philippines and Thailand have been at $565-570/mt CFR.
Currently, offer prices of ex-Indonesia wire rod to the export market have been heard at $540/mt FOB. Some sales have been done to Latin America together with billet sales at $520/mt FOB to the same destination. Ex-Malaysia wire rod offers have been reported at $550/mt FOB as the lowest.
As of Thursday, June 29, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,723/mt ($516/mt), decreasing by RMB 37/mt ($5.1/mt) or down 1 percent since June 15, while rising by 0.16 percent compared to the previous trading day (June 28).
$1 = RMB 7.2208