Average offer prices for ex-China wire rod have edged up compared to the previous week due to the production restrictions for the 100th anniversary of the founding of the Communist Party of China, which limited supply of wire rod and bolstered prices.
Offers for ex-China wire rod have been heard at $820-850/mt FOB, moving up by $15/mt on average compared to the previous week amid the increasing trend in rebar futures prices. “The production restrictions reduced wire rod output and provided support for prices and, though demand in the traditional offseason has not seen any big improvement, cautious sentiment has still prevailed among market players,” an international trader said, adding that buyers from Southeast Asia have been unwilling to procure import wire rod due to the rainy season and the negative impact of the Covid-19 pandemic.
The price level for ex-Vietnam IF wire rod has remained at $730/mt CFR. Some Southeast Asian suppliers have been preparing to increase prices by $10/mt, but poor demand has been limiting their possibilities. Offers for blast furnace-origin wire rod have been reported at $750-760/mt CFR to the Philippines.
As of July 9, rebar futures at the Shanghai Future Exchange are standing at RMB 5,428/mt ($838/mt), increasing by RMB 304/mt ($47/mt) or 5.9 percent since July 2.
$1 = RMB 6.4755