Offer prices for ex-China wire rod have moved sideways amid healthy consumption in the local market. At the same time, demand from overseas markets has remained slack, while customers’ bids are at the same level as before the Labor Day holiday.
SteelOrbis has been informed that Chinese mills’ export prices for wire rod have moved sideways over the past week at $425-445/mt FOB with most producers’ prices at the lower end of the range. The tradable levels in the Philippines and other Southeast Asian countries are still at $415-420/mt CFR. Meanwhile, bids from Vietnam still stand at $410/mt CFR. After an ex-Indonesia wire rod sale at $415/mt CFR Southeast Asia ahead of the Labor Day holiday, there have been no fresh transactions, sources said. “The slack demand from overseas markets will continue to negatively affect China’s wire rod exports,” a trader said.
Demand for wire rod in the Chinese domestic market has improved. Though the inventory levels of wire rod are at historically high levels, bullish sentiments prevail among domestic wire rod traders, which will negatively affect wire rod exports.
As of Thursday, May 7, rebar futures at the Shanghai Future Exchange are standing at RMB 3,439/mt ($485/mt), increasing by RMB 72/mt ($10.2/mt) or 2.1 percent since April 30. After the holiday, rebar futures prices have moved up for two consecutive days amid macro-policy stimulus measures.
$1 = RMB 7.0931