Average offer prices for ex-China wire rod have moved sideways over the past week with some support from increasing futures prices. However, in general, the mood has not improved in Asia, as reflected in some lower offers from ASEAN-based mills.
Offers for ex-China wire rod have been heard at $540-560/mt FOB, remaining stable compared to May 11. “During the given week, rebar futures prices have edged up gradually, exerting a positive impact on wire rod prices, while the relatively low outputs of wire rod have also bolstered prices from the supply side. However, demand from the real estate industry has been sluggish, and market participants have started to expect the government to issue more stimulus policies to boost economic development,” an international trader said.
Offer prices of ex-China wire rod are still at $540-545/mt CFR mostly, similar to last week, though a number of suppliers are heard to have started to offer at $550-580/mt CFR Philippines, though buyers still look forward for $540/mt CFR at the highest. Market players have been more positive, but the main issue is still demand.
Meanwhile, official offer prices from the leading Malaysian mill are at $550-560/mt FOB, stable from last week. However, according to market sources, traders have started to test the market with lower levels around $570/mt CFR or so. An Indonesian mill has been offering wire rod at $530-540/mt FOB.
As of Thursday, May 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,687/mt ($527.5/mt), increasing by RMB 87/mt ($12.5/mt) or up 2.4 percent since May 11, while rising by 0.3 percent compared to the previous trading day (May 17).
$1 = RMB 6.9967