Prices for ex-China wire rod have moved sideways over the past week since, on the one hand, demand in China and in Southeast Asia has been slow, while, on the other hand, production halts have bolstered prices to a certain degree. Accordingly, it is expected that wire rod prices will be stable or just improve slightly in the coming period.
Offers for ex-China wire rod have been heard at $470-490/mt FOB, remaining stable compared to August 21, with second-tier mills offering at the lower end of the range and the large mills at the higher end of the range. The tradable prices have been heard at $465-480/mt FOB, but no lower offers for non-VAT material have been heard after tight inspections started at some ports recently.
Demand for wire rod in overseas markets has been sluggish, while buyers expect better demand entering into autumn, resulting in the weak performance of export activities. Since the military parade in early September is approaching, production cuts have been implemented in northern China, providing support for wire rod prices. At the same time, Shanghai has lifted restrictions on house purchases, which may exert a positive impact on the real estate market and bolster wire rod prices to a certain degree. Currently, the hot summer temperatures are curbing domestic demand, creating some pressure to export. It is expected that wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia and Malaysia have been heard at $490/mt FOB for October shipment, stable over the past week. Offers of ex-Vietnam CB300V-D6 wire rod have been heard at $520/mt FOB, also moving sideways on average week on week. But offers to distant markets at higher levels of $530-540/mt FOB have also been heard.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $480-485/mt CFR, remaining stable on average week on week.
As of August 28, rebar futures at Shanghai Futures Exchange are standing at RMB 3,129/mt ($441/mt), increasing by RMB 8/mt ($1.1/mt) or 0.26 percent since August 21, while up 0.55 percent compared to the previous trading day, August 27.
$1 = RMB 7.1063