Average offer prices for ex-China wire rod have moved down over the past week amid decreasing rebar futures prices in China, after market sources were disappointed by the new stimulus measures for the real estate sector announced this week. ASEAN offers have been either high or nonexistent.
Offers for ex-China wire rod from second-tier mills have been heard at $490-505/mt FOB, decreasing by $17.5/mt on average compared to October 10. Some top-tier mills, which had been holding offers at $530-540/mt FOB, have also dropped offers and have been ready to deal at $505-515/mt FOB. “Today, some Chinese mills got spooked by the futures prices. So, traders managed to get a $25/mt discount on the wire rod offers made two days back from a first-tier mill,” a Southeast Asian source said.
During the given week, downward corrections have been observed in the Chinese domestic wire rod market, following sharp drops in futures prices as the market mood has worsened. As of October 17, rebar futures at Shanghai Futures Exchange are standing at RMB 3,300/mt ($463/mt), decreasing by RMB 142/mt ($23/mt) or 4.1 percent since October 10, while down 5.01 percent compared to the previous trading day, October 16.
The latest offers from Malaysian and Indonesia wire rod exporters were at $520/mt FOB, but, while this reflected the firm offers last week, at the moment some mills, like Dexin Steel, have withdrawn their official offers. The tradable level for ASEAN wire rod has been assessed at $505-510/mt FOB due to the price fall in China, but these price levels are mainly indicative.
$1 = RMB 7.122
