Average offer prices for ex-China wire rod have moved sideways over the past week amid the unwillingness to conclude purchases from overseas buyers and the ongoing low levels of bids, while sellers have also tried to hold prices stable while assessing further market developments.
Ex-China wire rod offers have been heard at $500-510/mt FOB, remaining stable on average compared to July 16. The tradable prices are heard at $500/mt FOB or just slightly below.
During the given week, major Chinese steelmaker Shagang Group has cut its wire rod prices by RMB 100/mt ($14.7/mt) for delivery in late July (July 21-31), exerting a negative impact on market sentiments. In the given period, wire rod production has increased slightly as some steelmakers have completed their maintenance works during the off-season, resulting in pressures on prices. Rebar futures prices have decreased, negatively affecting wire rod prices in the spot market. Meanwhile, China's mid-year Politburo meeting is scheduled for late July and may help bolster the wire rod market. It is thought that wire rod prices in the Chinese domestic market will rebound in the coming period if new stimulus measures are announced.
Wire rod offer prices from Indonesia's Dexin Steel are at $485/mt FOB for September shipment, stable week on week.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $510/mt CFR, remaining unchanged compared to last week. But buyers have still been insisting on $500-505/mt CFR.
As of July 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,085/mt ($454/mt), decreasing by RMB 30/mt ($4.4/mt) or 1.0 percent since July 16, while up 0.06 percent compared to the previous trading day, July 22.
$1 = RMB 6.7906
