Average offer prices for ex-China wire rod have remained at the high levels announced by Chinese mills on September 30 ahead of the long holiday, while they are $30/mt higher compared to two weeks ago, amid higher futures prices and better expectations, which, however, have faded recently.
Offers for ex-China wire rod from second-tier mills have been heard at $510-520/mt FOB, increasing by $30/mt on average compared to those recorded on September 26, while stable compared to September 30. First-tier mills have been offering at $5430-550/mt FOB.
During the past two weeks, wire rod prices in the Chinese domestic market have moved up significantly following China’s announcement of stimulus policies to boost the economy and revive market sentiments. Ahead of the long National Day holiday, some downstream users had replenished stocks of wire rod, firmly bolstering prices. “However, following the big rises in rebar futures prices, downward corrections have been observed over the past two trading days, exerting a negative impact on the wire rod market. So, it is thought that Chinese wire rod prices will likely fluctuate within a limited range in the coming week,” an international trader said.
Offer prices of Indonesian wire rod have been heard at the stable level of $505/mt FOB, while offer prices of ex-Malaysia wire rod have been heard at $500/mt FOB.
The latest offers for imported wire rod in Southeast Asia have remained at $520-525/mt CFR at the lowest. The market was more active when wire rod prices were at $470-480/mt CFR, according to market sources, while after offers exceeded $490-495/mt CFR trading has slackened and offers have been fewer.
As of October 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,442/mt ($487/mt), increasing by RMB 161/mt ($23/mt) or 4.9 percent since September 26, while down 1.66 percent compared to the previous trading day, October 9.
$1 = RMB 7.0742
