Offer prices for ex-China wire rod have edged down amid bearish sentiments among market players as it is approaching the Labor Day holiday (May 1-5). However, Southeast Asian buyers’ bids have fallen further, resulting in low transaction activities. Demand for wire rod in the Chinese domestic market has shown improvement, while the inventory of wire rod has seen decreases.
SteelOrbis has been informed that Chinese mills’ export prices for wire rod have moved down by $5/mt from the upper end over the past week to $425-445/mt FOB. Meanwhile, buyers from Vietnam have been bidding at $410/mt CFR, while buyers from the Philippines have been considering buying at $415-420/mt CFR. There have been reports that Dexin Steel from Indonesia have been ready to give $415/mt CFR to some Southeast Asian customers, but the deal has not been confirmed by the time of publication.
“Though the inventory level of wire rod [in China] has decreased, it has still been at a historical high level, which will continue to exert a negative impact on its prices for the coming period,” a trader said.
As of Thursday, April 30, rebar futures at the Shanghai Future Exchange are standing at RMB 3,367/mt ($477/mt), increasing by RMB 37/mt ($5.3/mt) or 1.1 percent since April 23. It is thought that wire rod consumption will be better in the local market as China has announced that the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) will be held in late May, which will exert a positive impact on wire rod market as more policies will be issued to stimulate infrastructure construction.
$1 = RMB 7.0571
