SteelOrbis has been informed that Chinese wire rod export offer prices have moved sideways at $470-485/mt FOB during the week ending October 10. Most suppliers are ready to sell at the lower end of the range, but overall demand has remained limited.
Meanwhile, Malaysian is still available at $470/mt CFR Philippines, but no deals have been heard.
Following the week-long holiday in China, market players’ sentiments have become cautious due to the expected loosening of production restrictions amid rising inventory levels and the declines seen in iron ore prices.
Rebar futures at the Shanghai Future Exchange have decreased by RMB 55/mt ($7.8/mt) since September 30, reaching RMB 3,415/mt ($492.8/mt) on Thursday, October 10. Meanwhile, ex-Australia 62 percent Fe content iron ore prices have declined from $93.2/mt CFR on September 30 to $91/mt CFR on October 9.
Local Chinese wire rod prices have declined after the long holiday, while they will likely gain some support from infrastructure construction later this month, which may prevent prices from declining sharply.