Average ex-China wire rod export prices have moved sideways after the long holiday amid the stable local market and the lack of a clear trend at least for now. Even though a rebound locally is still expected later in October, some traders in Aisa have been voicing lower levels than mills, considering overall bearish sentiments in the market.
Offers for ex-China wire rod have been heard at $470-490/mt FOB, moving sideways compared to September 25. The tradable prices have been heard at $465-480/mt FOB.
During the given period, the long holiday has resulted in increasing inventories, exerting a negative impact on the wire rod market. However, market players are still optimistic as regards the future prospects for the wire rod market as October is regarded as another month in the traditional peak season for business. The Fourth Plenary Session of the 20th Central Committee of the Chinese Communist Party will be held during October 20-23, which will bolster market sentiments. It is thought that wire rod prices in the Chinese domestic market will rebound later in the month.
Wire rod offer prices from Indonesia’s Dexin have been heard at $465/mt FOB for November shipment, similar to what was reported late last week, but down by $15/mt to the level seen two weeks ago. The mill has had limited sales for wire rod lately, so it has been eager to cut offers to collect more orders. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $490/mt FOB and offers of ex-Vietnam CB300V-D6 wire rod have been heard at $510-520/mt FOB, moving sideways on average week on week.
In Southeast Asia, mainstream offer prices of Chinese SAE1008 6.5 mm wire rod have been heard at $495-500/mt CFR, but there have been fresh offers from some traders at $485-490/mt CFR today, October 9, reported to Thailand, and some buyers in the Philippines are waiting for $480/mt CFR. This signals some return of bearish sentiments in this major outlet for Chinese wire rod.
As of October 9, rebar futures at Shanghai Futures Exchange are standing at RMB 3,096/mt ($436/mt), decreasing by RMB 72/mt ($10.1/mt) or 2.3 percent since September 25, while up 0.19 percent compared to the previous trading day, September 30.
$1 = RMB 7.1102