Average offer prices for ex-China wire rod have moved down over the past week amid the decreasing trend in rebar futures and weak short-term outlook. This has led to decline in ex-ASEAN wire rod offers, which are now in line with Chinese ones.
Offers for ex-China wire rod from second-tier mills have been heard at $475-485/mt FOB, decreasing by $7.5/mt on average compared to that recorded on December 12, while reference deal prices have been heard at $475/mt FOB, also declining by $7.5/mt over the week.
During the given week, though China’s announcement of implementing a “moderately loose” monetary policy in 2025 bolstered market sentiments, transaction activities haven’t seen significant improvements. Cautious sentiments prevailed among buyers in the wire rod market. At the same time, the U.S. Federal Reserve’s cut in the interest rates dragged down ferrous metal prices, weakening wire rod prices. Some steelmakers in northern China planned to implement maintenances, which reduced the production of wire rod and provided certain support to its prices. It is expected that wire rod prices in the Chinese domestic market will likely edge down further in the coming week.
Offer prices from the Indonesian wire rod exporter have lost $10/mt over the week, coming to $475/mt FOB for February shipment. “Traders have already been ready to give $480/mt FOB or below [early this week] and can’t sell. So, I don’t think that with new Dexin prices buyers will be active,” a Singapore-based source said.
In the SE Asian wire rod market, most offers for Asian wire rod (excluding non-VAT material) have been at $490/mt CFR, while some non-VAT offers have already been reported at $480/mt CFR, $10/mt lower compared to last week. Buyers are waiting for $475/mt CFR.
As of December 19, rebar futures at Shanghai Futures Exchange are standing at RMB 3,287/mt ($456/mt), decreasing by RMB 141/mt ($20.6/mt) or 4.1 percent since December 12, while down 1.5 percent compared to the previous trading day, December 18.
$1 = RMB 7.1911
