Chinese wire rod exporters cut prices due to weak demand, cautious sentiment in local market

Thursday, 19 September 2019 11:53:10 (GMT+3)   |   Shanghai
       

SteelOrbis has been informed that Chinese export offer prices for wire rod have moved down by $5-10/mt since last week to $470-485/mt FOB during the week ending September 18. Though some suppliers are still insisting on offers at $480/mt FOB, most suppliers can discuss deals at $470//mt FOB. A deal at this level has been concluded in Southeast Asia, according to a rumor in the market. However, most buyers have been insisting on additional discounts. 

Moreover, Malaysia-origin wire rod is still being offering by a trader at $470/mt CFR to the Philippines.

The inventory level in the local wire rod market in China has decreased this week, while market players’ sentiments have become cautious. The National Day holiday (October 1-7) is approaching and the environmental protection measures will be strictly implemented, including measures affecting steel production, rolling and transportation, which will provide support for local wire rod prices at their current levels, though it is unlikely that prices will rise given the limited demand.

Rebar futures at the Shanghai Future Exchange have decreased by RMB 56/mt ($7.9/mt) since last Thursday, reaching RMB 3,493/mt ($494/mt) on Wednesday, September 18. Meanwhile, 62 percent Fe content Australian iron ore prices have declined from $98.5/mt CFR last Friday to $95.5/mt CFR on September 18.

$1 = RMB 7.07


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