Average offer prices for ex-China wire rod have moved sideways over the past week, and a number of sources believe that the market has reached a temporary bottom. Also, after the previous hiking of ex-ASEAN wire rod offers, they have moved sideways.
Offers for ex-China wire rod from second-tier mills have been heard at $450-460/mt FOB, remaining stable on average compared to April 17, while reference deal prices heard at $450/mt FOB.
During the given week, market sentiments have improved amid the anticipated easing of US-China relations, exerting a positive impact on the wire rod market. The Political Bureau meeting in China will be held in late April, bolstering sentiments as market players are expecting more stimulus policies. Moreover, there may be some stock replenishment ahead of the Labor Day holiday (May 1-5), which will positively affect wire rod prices to a certain degree. It is expected that wire rod prices in the Chinese domestic market will edge up in the coming week.
Official offer prices for ex-Indonesia wire rod for September shipment have remained at $520/mt FOB. The current level seems too high for most customers and signals that the mill is not eager to sell at present. The tradable level for ex-ASEAN wire rod for has been assessed at $485-490/mt FOB at the highest.
As of April 24, rebar futures at Shanghai Futures Exchange are standing at RMB 3,106/mt ($431/mt), increasing by RMB 14/mt ($2/mt) or 0.45 percent since April 17, while down 0.1 percent compared to the previous trading day, April 23.
$1 = RMB 7.2098
