Average offer prices for ex-China wire rod have remained unchanged over the past week, though the mood in the local Chinese market is still negative and further declines are not excluded in the near future.
Offers for ex-China wire rod have been heard at $450-470/mt FOB, moving sideways on average compared to June 19, while reference deal prices have been heard at $445-460/mt FOB, also remaining stable compared to June 19.
During the given week, wire rod prices in the Chinese domestic market have edged down amid decreasing rebar futures prices and the sluggish demand from downstream users. Cautious sentiments have prevailed among market players. Traders mostly tend to maintain low inventory levels. At the same time, the widespread rainy weather and high temperatures will continue to negatively affect the demand for wire rod due to the slowdown in construction activities. It is thought that wire rod prices in the Chinese domestic market will edge down in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $490/mt FOB, for delivery in September, remaining stable compared to June 19, while offer prices of ex-Malaysia SAE1006 wire rod have been heard at $480/mt FOB, and offer prices of ex-Vietnam CB300V-D6 wire rod have been heard at $535/mt FOB.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been stable at $465-470/mt CFR.
As of June 26, rebar futures at Shanghai Futures Exchange are standing at RMB 2,973/mt ($412/mt), decreasing by RMB 13/mt ($1.8/mt) or 0.4 percent since June 19.