Average offer prices for ex-China wire rod have indicated slight rises over the past week, supported by high raw material prices and futures prices, while mills in the ASEAN region have also voiced some price rises ahead of the holidays.
Offers for ex-China wire rod have been heard at $550-590/mt FOB, edging up by $10/mt on average due to the decline on the low end compared to December 21. The high level of iron ore prices, which have exceeded $140/mt CFR this week, has provided strong support for wire rod prices in the Chinese domestic market. At the same time, the heavy pollution in northern China has caused steel producers to halt their production activities, thereby reducing the supply of wire rod to some extent, bolstering prices. “Currently, demand for wire rod has been slack in the traditional offseason. However, there are expectations that downstream users will replenish stocks for the winter in the coming weeks,” an international trader said.
Offer prices of ex-Indonesia and ex-Malaysia wire rod have been heard at $550-560/mt FOB, edging up by $5/mt compared to December 21.
As the end of the year is approaching, demand for wire rod in Asia and other major trading destinations has been weak, resulting in quiet inquiries from buyers. Buyers’ price ideas have remained at $550-555/mt CFR Manila, while offers have been reported at $565/mt CFR and above.
As of Thursday, December 28, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,996/mt ($563/mt), increasing by RMB 8/mt ($1.1/mt) or up 0.2 percent since December 21, while decreasing by 0.42 percent compared to the previous trading day (December 27).
$1 = RMB 7.0974
