Average offer prices for ex-China wire rod have moved sideways compared to the week before the Chinese New Year holiday as most steelmakers have not yet given official offer prices for ex-China wire rod.
Offers for ex-China wire rod have been heard at $630-660/mt FOB, moving sideways compared to the previous week, but they are expected to increase visibly in the near future, taking into account the strong local market after the holiday. “Iron ore futures prices have moved up by 7.05 percent on the first trading day after the long holiday, while rebar futures prices have increased by 3.26 percent, which will bolster ex-China wire rod offer prices, though steelmakers have not issued the new export offer prices yet,” an international trader said.
In the Southeast Asian market, the new price level from traders is expected to be not below $620/mt CFR once trading resumes, while before the holiday position cargoes from China were sold at $605-610/mt CFR the Philippines.
As of Thursday, February 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,529/mt ($703/mt), increasing by RMB 283/mt ($44/mt) or 6.67 percent since February 4, while rising by 3.26 percent compared to the previous trading day (February 10).
$1 = RMB 6.4391