ASEAN region-based wire rod suppliers have still been insisting on higher export prices, having increased their prices last week. However, a number of customers have claimed that weak consumption and poor fundamentals are not allowing them to accept higher prices. Average offer prices for ex-China wire rod have remained stable over the past week.
The reference import prices of wire rod in the Philippines have widened to $570-590/mt CFR from $575-580/mt CFR last week, posting just a slight increase of $2.5/m on average over the week. Some ASEAN suppliers have been insisting on offers at $585-590/mt CFR, while some have even increased their offers to $600/mt CFR Manila. But buyers have been reluctant to purchase at high prices. tNo new deals have been reported so far and “most bids in Manila are at $570/mt CFR,” a local source said.
Customers from other Southeast Asian countries, Thailand in particular, have been ready to accept slightly higher levels, at $580-585/mt CFR.
Offer prices of Vietnam Hoa Phat CB240-T wire rod have been heard at $630/mt FOB and they have been left without any interest amid the sluggish demand in Asia.
Offers for ex-China wire rod have been heard at $600-630/mt FOB, remaining stable on average compared to August 4.
“The declining inventory levels have positively affected the wire rod market, while the hot weather has exerted a negative impact on prices. The rising trend of rebar futures prices has bolstered market sentiments,” an international trader said.
As of Thursday, August 11, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,108/mt ($609.5/mt), increasing by RMB 128/mt ($19/mt) or 3.2 percent since August 4.
