The import wire rod market in Asia has seen some improvements this week as Chinese importers have been interested in purchases and some deals for ex-ASEAN wire rod have been done. After this movement, suppliers have started to increase offers, expecting that demand from China will persist for some time.
According to market sources, deals for ex-Indonesia and ex-Malaysia BOF wire rod have been done at $770-774/mt CFR this week to China. These levels are almost in line with the asking prices seen early this month. Also, taking into account that demand from Southeast Asia, in the Philippines in particular, has been bad, the resumption of imports by China is a positive sign, market sources told SteelOrbis.
After the deals, wire rod offer prices from ASEAN-based suppliers have been heard at as high as $780-800/mt CFR.
Offers for ex-China wire rod in the export markets have been heard at $845-890/mt FOB, remaining stable on average compared to the previous week. “The restrictions on energy consumption have negatively affected wire rod output, bolstering prices locally. The production restrictions will likely continue, which will provide solid support for wire rod prices in the near future,” an international trader said.
As of October 15, rebar futures at the Shanghai Future Exchange are standing at RMB 5,515/mt ($890/mt), decreasing by RMB 235/mt ($36.5/mt) or 4.1 percent since October 8.
$1 = RMB 6.4386