Average offer prices for ex-China wire rod have moved sideways over the past week, while only limited sales have been reported in the market. Buyers have been looking for non-VAT material at lower levels. At the same time, some bookings of ex-ASEAN wire rod have been reported at the same level as in late October.
Offers for ex-China wire rod have been heard at $455-470/mt FOB, moving sideways compared to November 6. The tradable prices have been heard at $450-460/mt FOB, while some non-VAT offers are still available at as low as $440-445/mt FOB, though not that many.
During the given period, rebar futures prices at Shanghai Futures Exchange have seen slight rises, positively affecting wire rod prices in the Chinese domestic market. The supply of wire rod has been limited, bolstering prices to a certain degree. Inventories of wire rod have been at relatively high levels and are being consumed at a gradual pace. The apparent consumption of wire rod has increased slightly, exerting a positive impact on prices. It is expected that wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $460/mt FOB for January shipment today, and, even though it is $5/mt below an offer seen a week ago, market sources assess the market as being stable. “Dexin again sold at $460/mt FOB, as we saw in their 50,000 mt booking in October,” a trader said.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $470-480/mt CFR, while lower levels of $460-465/mt CFR have been heard for Chinese non-VAT wire rod.
As of November 13, rebar futures at Shanghai Futures Exchange are standing at RMB 3,046/mt ($429/mt), increasing by RMB 9/mt ($1.3/mt) or 0.3 percent since November 6, while up 0.23 percent compared to the previous trading day, November 12.
$1 = RMB 7.0865
