Average offer prices for ex-China wire rod have moved up over the past week, supported by domestic and futures price increases, which also made ASEAN-based wire rod exporters more bullish.
Offers for ex-China wire rod have been heard at $520-550/mt FOB, moving up by $15/mt compared to June 1. “During the given week, inventories of wire rod in the Chinese market have decreased as market players have been more willing to buy amid the rising trend of ferrous metal futures prices, which bolstered wire rod prices. But in general demand from downstream users has been slack, while construction activities may be negatively affected as the rainy season is approaching,” a trader said.
Buyers in the Philippines have been seeking to buy wire rod at $530-540/mt CFR, with some negotiations reported at $535/mt CFR early this week. However, less Chinese exporters are giving offer prices for wire rod now, and prices have increased to $540-550/mt CFR Manila by June 8.
Meanwhile, offer prices of ex-Malaysia wire rod have been heard at $550-570/mt CFR the Philippines.
Official offers for ex-ASEAN wire rod to distant markets like Europe and Turkey have been at $550-560/mt FOB this week, up from $530-540/mt FOB a week ago.
As of Thursday, June 8, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,654/mt ($512.6/mt), increasing by RMB 108/mt ($15.2/mt) or up 3.05 percent since June 1, while increasing by 0.63 percent compared to the previous trading day (June 7).
$1 = RMB 7.128