During the week ending August 14, Chinese export offer prices for rebar and wire rod have moved down by $20/mt. At present, rebar offers given by Chinese suppliers are at $470-480/mt FOB, while wire rod offers are at $485-500/mt FOB.
Rebar futures prices at Shanghai Futures Exchange (SHFE) have moved down sharply at the beginning of the given week, while moved on a rebounding trend later, impacting rebar prices in spot market. At the same time, typhoon Lekima hit coastal area in eastern China, curbing the purchases of longs products.
Buyers from Singapore were still not interested in purchase of rebar from China, insisting on further $10/mt decline.
The official offer prices of wire rod from Alliance Steel in Malaysia has been heard at $490/mt FOB, which is still more competitive than those from China. Meanwhile, traders mentioned the demand for wire rod in Indonesia has been quiet.
Because of high-priced iron ore and coke, steelmakers’ profitability has shrunk, resulting in production halt and maintenances on blast furnaces, which will decrease the output and exert a positive impact on rebar and wire rod market in the near future. Lower supply volume is unlikely to push up export prices for longs, but it will prevent prices from further sharp cuts in the coming week
|
Product name |
Quality |
Spec. |
Price ($/mt) FOB |
Weekly change ($/mt) |
|
ASTM A615 |
20 mm |
475 |
↓20 |
|
|
SAE1008-1010 |
7-8.5 mm |
492.5 |
↓22.5 |