Southeast Asian wire rod suppliers have been evaluating the market and at present are not offering actively, preparing instead for the sharp rise in prices next week, seeing hikes in billet prices and expecting that demand for wire rod in Asia will go up. Average offer prices for ex-China wire rod have risen over the past week amid the increasing trend of rebar futures prices in China.
Most suppliers of wire rods have been reluctant to provide offers, though all of them are confident that prices will rise above $800/mt CFR. “I expect $820-830/mt CFR new offers [from Malaysia],” an international trader said. Another source said that buyers from the Philippines could pay $800/mt CFR, up by $20/mt on average from the level seen in deals in the second half of February, but suppliers are not accepting this.
Also, new wire rod offers are expected from Indonesia at hardly below $810-820/mt FOB from next week, with the current freight rate at $30-40/mt in the ASEAN region.
Offers for ex-China wire rod have been heard at $740-790/mt FOB, edging up by $5/mt on average compared to February 24.
“The rising ferrous metal futures prices have exerted a positive impact on ex-China wire rod offer prices,” an international trader said.
The Russian invasion of Ukraine has pushed up commodity prices in the international market, also resulting in big rises in ferrous metal futures prices. At the same time, iron ore prices have risen, increasing steelmaking production costs and bolstering market players’ sentiments.
As of Thursday, March 3, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,880/mt ($774.6/mt), rising by RMB 243/mt ($38.6/mt) or 5.24 percent since February 24.