Offer prices of ex-Malaysia and ex-India wire rod have been heard at $455-460/mt CFR Southeast Asia, in line with last week. Some Southeast Asian customers have been able to get $450/mt CFR from India, but bids have been at a lower level. Importers have been unwilling to buy at the current offer levels as the recovery of downstream industries has been slow. As a result, while a deal for ex-Vietnam wire rod was heard at $435-445/mt CFR to the Philippines last week, customers still want to buy at a similar level.
Offer prices for ex-China wire rod have moved sideways in the past week, remaining uncompetitive for overseas buyers. Offers for ex-China wire rod have been heard at $460-470/mt FOB. “Rains and floods in China pushed up inventories of wire rod due to the slowdown of construction activities, exerting pressure on traders,” a source commented.
During the past two weeks, due to the Dragon Boat Festival (June 25-27) and rainy weather and floods affecting the local market, demand for wire rod has been weaker. The inventory level of wire rod has seen rises compared to two weeks ago, while mainstream steelmakers have not halted their production, which will negatively affect wire rod prices in the coming period.
As of Thursday, July 2, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,573/mt ($506/mt), decreasing by RMB 42/mt ($6.0/mt) or 1.2 percent since June 18.
$1 = RMB 7.0566