Average offer prices for ex-China wire rod have moved sideways over the past week, but in general the market mood has been bearish due to slack demand.
Offers for ex-China wire rod have been heard at $475-485/mt FOB, moving sideways compared to January 29. The tradable prices have been heard at $470-480/mt FOB.
During the given week, wire rod prices in the Chinese domestic market have been under pressure but generally have remained stable. Rebar futures prices have moved down, exerting a negative impact on wire rod prices. Meanwhile, inventories have seen rises as construction sites have halted activities, slackening the demand for wire rod and negatively affecting prices. The production of wire rod may continue to decrease in the coming week as the Chinese New Year holiday (February 14-23) is approaching, while the demand will shrink further. It is expected that wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
The tradable levels for ASEAN wire rod (Indonesia and Malaysia) have remained stable at $485-490/mt FOB.
In Southeast Asia, offer prices of SAE1008 6.5 mm wire rod are still at $490-495/mt CFR, while buyers have been insisting on discounts of at least $10/mt.
As of February 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,101/mt ($445.5/mt), decreasing by RMB 56/mt ($8.0/mt) or 1.8 percent since January 29, while down 0.29 percent compared to the previous trading day, February 4.
$1 = RMB 6.957
