SteelOrbis has been informed that Chinese export offer prices for wire rod have moved down by $10/mt compared to that recorded on October 10 and are currently at $460-470/mt FOB. There have been some firm bids from buyers for the lower end of this range as the lack of demand in the international market and weaker sentiments in the local market have exerted pressure on Chinese suppliers.
Offers for Malaysia-origin wire rod have been in line with Chinese. Malaysian wire rod has been offered at $475/mt CFR Philippines, while bids have been not higher than $460/mt CFR.
During the given week, bearish sentiments have prevailed in the Chinese wire rod market due to the downtrend seen in iron ore prices, subdued buying activities and declines in ferrous metal futures prices.
Rebar futures at the Shanghai Future Exchange have decreased by RMB 91/mt ($12.9/mt), or 2.7 percent since October 10, reaching RMB 3,324/mt ($469.5/mt) on Thursday, October 17. Meanwhile, 62 percent Fe content Australian iron ore prices have declined from $94/mt CFR on October 10 to $87/mt CFR on October 16.
Though local Chinese wire rod prices have moved on a decreasing trend, there is some hope that quotations will not move down further due to the declines in the inventory level amid insufficient supply and support from infrastructure construction.
$1 = RMB 7.079