Average offer prices for ex-China wire rod have increased in the past week amid the positive situation in the local market and globally.
Offers for ex-China wire rod have been heard at $540-550/mt FOB, moving up by $5/mt compared to the previous week. “Due to the quick rises seen in local wire rod prices, steelmakers have raised their ex-China wire rod prices, and they suspended giving offer prices in the latter part of the given week,” an international trader said.
In the overseas market, it is heard that buyers from South America have been willing to accept the rising prices from China, with a deal at $550/mt FOB being heard.
Offer prices of ASEAN wire rod have been heard at $530-535/mt CFR the Philippines, up by $5-10/mt over the past week.
In the Chinese domestic market, good demand will likely continue in the short term, which will result in tight supply of wire rod to the export market, supporting prices.
As of Thursday, November 19, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,940/mt ($601.7/mt), increasing by RMB 108/mt ($16.5/mt) or 2.82 percent since November 12, and increasing by 0.87 percent compared to the previous trading day.
$1 = RMB 6.5484