Average offer prices for ex-China wire rod have edged down slightly over the past week amid rises in supply, though some improvement in sentiments have been seen amid the rebound in futures prices. ASEAN mills have also cut offer prices slightly, but sellers have not been so aggressive, having only end-of-January allocation.
Offers for ex-China wire rod from second-tier mills have been heard at $475-490/mt FOB, moving down by $5/mt on average compared to November 14. During the given week, wire rod prices in the Chinese domestic market have edged up amid increasing rebar futures prices and rising iron ore prices. However, offer prices for wire rod in the export market have seen declines as the supply of wire rod in northern China has increased, while demand has slackened due to the cold weather. Currently, the increasing iron ore prices provide some support for wire rod prices. It is thought that wire rod prices in the Chinese domestic market may be stable or edge up in the coming week. However, in the export market, a rebound is unlikely, according to market sources, and this outlook is based on the reemergence of offers from non-VAT traders at lower prices. In particular, the lowest offers and some deals for wire rod in the Southeast Asian market have been heard at $480-490/mt CFR, versus $495-510/mt CFR last week.
Official offer prices for Indonesian wire rod have been heard at $490/mt FOB for end-of-January shipment, but buyers are still targeting $475-480/mt FOB. Offer prices of ex-Malaysia wire rod have been heard at $500-510/mt FOB, decreasing by $2.5/mt on average compared to the previous week.
As of November 21, rebar futures at Shanghai Futures Exchange are standing at RMB 3,332/mt ($463/mt), increasing by RMB 19/mt ($2.6/mt) or 0.6 percent since November 14, while up 0.51 percent compared to the previous trading day, November 20.
$1 = RMB 7.1934
