Average offer prices for ex-China wire rod have indicated further rises over the past week amid some warmer sentiments locally and rises in costs with higher iron ore prices and support from the billet market, while increasing freight costs due to escalating tensions in the Middle East have added to the sentiments.
Offers for ex-China wire rod have been heard at $490-500/mt FOB, increasing by $5/mt on average compared to March 12. The lowest tradable prices were heard at $485/mt FOB at the lowest.
During the given week, the ongoing war in the Middle East has affected the supply of Iranian semi-finished steel, potentially pushing up wire rod prices. Meanwhile, rising crude oil prices have also driven up shipping and logistics costs, providing support for wire rod prices. Increasing production costs have bolstered wire rod prices, while demand from downstream users has improved slowly, not as fast as market players expected. Cautious sentiments have prevailed among market players due to the war, which might negatively affect wire rod prices. However, construction activities will improve as the weather gets warmer, which will result in improved demand for wire rod and exert a positive impact on prices. It is thought that wire rod prices in the Chinese domestic market will likely indicate further gradual increases in the coming week.
Wire rod offer prices from Indonesia’s Dexin Steel are at $520/mt FOB for June shipment, increasing by $10/mt over the past week. Mainly local sales have boosted ex-Indonesia prices.
Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $490-500/mt FOB, in line with China.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $505-520/mt CFR, increasing by $5/mt on average over the past week.
As of March 19, rebar futures at Shanghai Futures Exchange are standing at RMB 3,135/mt ($452/mt), increasing by RMB 15/mt ($2.2/mt) or 0.5 percent since March 12, while down 0.51 percent compared to the previous trading day, March 18.
$1 = RMB 6.8975
