SteelOrbis has been informed that Chinese export offer prices for wire rod from mills have moved up by $10/mt compared to November 7 and are currently at $460-470/mt FOB. “Bullish sentiments have started to prevail among players in the wire rod market due to the rising trends seen in ferrous metal futures,” a trader said.
Offers for Malaysia-origin wire rod have been heard at $465-470/mt CFR Philippines, $10-15/mt higher week on week. Moreover, a deal has been signed near to the lower end of the range, according to traders.
During the given week, China has issued air pollution control programs for the 2019-20 winter season for the Yangtze River Delta area and the Fenwei plain area, including the provinces of Shanxi, Shaanxi and Henan, exerting a positive impact on the steel market as market players expect steel output will decrease in the coming months. At the same time, inventory levels of wire rod have decreased continuously over the past few weeks, bolstering wire rod prices.
As of Thursday, November 14, rebar futures at the Shanghai Future Exchange are standing at RMB 3,511/mt ($501.5/mt), increasing by RMB 93/mt ($13.3/mt) or 2.7 percent since November 7.
$1 = RMB 7.0083