Average offer prices for ex-China wire rod have moved sideways over the past week as from one side, production cuts in China have a positive impact to the market, while from the other side, demand has been still very weak and buyers have been waiting for discounts.
Offers for ex-China wire rod have been heard at $460-475/mt FOB, remaining stable on average compared to that recorded on July 10, while reference deal prices have been heard at $455-465/mt FOB.
During the given week, wire rod prices in the Chinese domestic market have seen slight rises as steelmakers reduced production, aiming to resist the excessive competition. The capacity utilization rates of electric arc furnaces have seen increases, following the price rises, which might negatively affect wire rod prices. The production restrictions will continue before the military parade in September, which will bolster the wire rod prices. It is expected that wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Offer prices of Indonesia Dexin wire rod are at $490/mt FOB, moving sideways on average compared to July 10, while ex-Malaysia SAE1006 wire rod have been on offer at $470-475/mt FOB, decreasing by $7.5/mt on average compared to July 10. Offer prices of ex-Vietnam CB300V-D6 wire rod have been heard at $530/mt FOB, down $5/mt on average week on week.
In Southeast Asia, Chinese traders have been ready to give offers of SAE1008 6.5 mm wire rod at $465-475/mt CFR, while buyers have been insisting at $460/mt CFR as the highest.
As of July 17, rebar futures at Shanghai Futures Exchange are standing at RMB 3,133/mt ($438/mt), increasing by RMB 10/mt ($1.4/mt) or 0.3 percent since July 10, while up 0.8 percent compared to the previous trading day, July 16.
$1 = RMB 7.1461