Prices for Asian wire rod have been surging rapidly on the back of increasing billet and raw material prices, as well as rising demand outside of the region. Most importers in Southeast Asia have been reluctant to purchase, but exporters have been very bullish, increasing prices every day with some deals for exports already heard.
Prices for ex-China wire rod have been reported at $840-850/mt FOB this week, up by $80/mt on average compared to the previous week. One contract has been confirmed at $845/mt FOB this week, while some other sources said that Chinese mills have started to voice offers at $860/mt FOB.
Apart from China, Southeast Asian producers have been more actively offering to the export market. According to sources, a sale of ex-Indonesia wire rod was at $1,000/mt CFR Europe last week, while this week offers are even higher.
Ex-Vietnam BF wire rod has been offered at $870/mt FOB on Thursday, up by $20/mt from earlier in the week.
The turbulent global situation has affected wire rod in the international market due to surging energy prices. Construction activities have been resumed gradually in different markets, increasing the demand for steel and exerting a positive impact on wire rod prices, while supply has been in short supply.
Russia’s war on Ukraine has led to an increase in commodity prices in the international market. Iron ore and coking coal prices have risen, increasing steelmaking production costs and bolstering market players’ sentiments.
Southeast Asia’s import wire rod market has also posted an increase, but not as big as in the export market. The import offer prices of wire rod in East Asia were heard at $840/mt CFR first, while ex-Malaysia and ex-Indonesia offers have increased to $860-870/mt CFR Manila at the lowest by the end of the week. This shows a $60-70/mt hike from the tradable level last week.
As of March 11, rebar futures at the Shanghai Future Exchange are standing at RMB 4,917/mt ($777/mt), increasing by RMB 16/mt ($2.5/mt) or 0.33 percent since March 4.