Average prices for ex-China and ex-ASEAN wire rod have remained stable over the past week. Most market players are maintaining a wait-and-see stance as regards the future prospects for the wire rod market, but higher futures and the gradual improvement in local demand in China have brought some hope for small increases in the wire rod export prices by the end of the month.
Offers for ex-China wire rod have been heard at $470-490/mt FOB, moving sideways compared to September 11. The tradable prices have been heard at $465-480/mt FOB.
During the given week, inventories of wire rod in the local Chinese market have increased, exerting a negative impact on prices in the spot market. Demand for wire rod from overseas markets has improved slightly, bolstering export prices to a certain degree. The US Federal Reserve has announced an interest rate cut, while it has also hinted that borrowing costs will continue to be reduced this year. This move will positively affect transaction activities in the ferrous metals market. Meanwhile, iron ore prices might rise in the near future, which will provide support for wire rod prices from the cost side. Moreover, since the National Day holiday (October 1-8) is approaching, stock replenishments will bolster wire rod prices. It is expected that wire rod prices in the Chinese domestic market will edge up in the coming week.
Prices for SAE1006 wire rod from Indonesia and Malaysia have been fluctuating in the range of $480-490/mt FOB for the past three weeks, and offers of ex-Vietnam CB300V-D6 wire rod have also been heard to be stable at $510-520/mt FOB.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been at $480-490/mt CFR, moving sideways week on week.
As of September 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,147/mt ($443/mt), increasing by RMB 55/mt ($7.7/mt) or 1.8 percent since September 11, while down 0.25 percent compared to the previous trading day, September 17.
$1 = RMB 7.1085