Average offer prices for ex-China wire rod have remained stable over the past week amid the slight changes in rebar futures prices and relatively full order books.
Offers for ex-China wire rod from second-tier mills have been heard at $475-490/mt FOB, remaining stable on average compared to November 28, while reference deal prices have been heard at $475-480/mt FOB.
During the given week, wire rod prices in the Chinese domestic market saw slight declines amid slight decreases in rebar futures prices. The production of wire rod has indicated some decreases, bolstering prices to a certain degree. Market players have lacked confidence as regards the future prospects for the wire rod market, which has contributed to the weakening of prices. It is expected that wire rod prices in the Chinese domestic market will edge down slightly in the coming week, mainly amid slow demand.
Offer prices of Indonesian wire rod have been heard at $490/mt FOB, stable over the past week, for shipment in February, signaling that the Indonesian mill is not eager to sell actively after previous transactions. Offer prices of ex-Malaysia wire rod have been heard at $500-510/mt FOB, also stable.
The import wire rod price level has been from stable at $485-490/mt CFR, but some higher offers at $495-500/mt CFR have been seen in Thailand.
As of December 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,280/mt ($456/mt), decreasing by RMB 32/mt ($4.5/mt) or 0.97 percent since November 28, while down 1.41 percent compared to the previous trading day, December 4.
$1 = RMB 7.1879
