Average offer prices for ex-China wire rod have edged down slightly over the past week due to poor demand, and even some production cuts expected by the end of the year in China have failed to boost prices. Low non-VAT wire rod offers continue to be heard.
Offers for ex-China wire rod have been heard at $450-470/mt FOB, edging down by $2.5/mt compared to that recorded on November 13. The tradable prices have been heard at $445-460/mt FOB, while the lowest non-VAT wire rod levels are still at $440-445/mt FOB.
During the given period, rebar futures prices at Shanghai Futures Exchange have fluctuated within a limited range, while market players have mostly held a wait-and-see stance as regards the future prospects for the wire rod market. Inventories of wire rod held by some traders are at relatively low levels, bolstering prices to a certain degree. “The market situation had been pretty clear after some rise in liquid iron earlier and the slow demand problem is still the main factor for the present market,” a Chinese trader said. It is thought that wire rod prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $465/mt FOB for February shipment, but market sources believe that the tradable level is still at $460/mt FOB at the highest. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $470/mt FOB.
In Southeast Asia, mainstream offer prices of SAE1008 6.5 mm wire rod have been heard at $465-480/mt CFR, where the lower end of the range corresponds to the level seen in the Philippines, while the higher end represents offers to Thailand. However, some small discounted deals have been heard at $455-460/mt CFR in Southeast Asia last week.
As of November 20, rebar futures at Shanghai Futures Exchange are standing at RMB 3,050/mt ($430/mt), increasing by RMB 4/mt ($0.6/mt) or 0.1 percent since November 13, while down 1.01 percent compared to the previous trading day, November 19.
$1 = RMB 7.0905
