Average offer prices for ex-China wire rod have moved up over the past week and this has been confirmed in some deals overseas, while the local market has been supported by futures prices and generally stable to positive expectations.
Offers for ex-China wire rod have been heard at $475-485/mt FOB, moving up by $10/mt compared to January 22. The tradable prices were heard at $470-480/mt FOB with some deals done at $470/mt FOB to the Latin American market. Large mills are now asking for prices not lower than $480/mt FOB.
During the given week, wire rod prices in the Chinese domestic market have edged up slightly amid increasing rebar futures prices. Since the Chinese New Year holiday (February 14-23) is approaching, demand for wire rod has been slack, which has exerted a negative impact on prices. Recently, other metals prices have seen big rises, bolstering sentiments in the steel market. It is thought that wire rod prices in the Chinese domestic market will move sideways in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $490/mt FOB, up by $5/mt from last week, while prices of ex-Malaysia SAE1006 wire rod have been at $485/mt FOB.
In Southeast Asia, mainstream offer prices of SAE1008 6.5 mm wire rod have been voiced at $490-495/mt CFR, versus $485-495/mt CFR last week. But low-priced offers at $467/mt CFR Vietnam seen last week have disappeared. “I think it will be too risky to offer non-VAT again, I don’t expect the market to be below $480/mt CFR [in SE Asia],” a trader said.
As of January 29, rebar futures at Shanghai Futures Exchange are standing at RMB 3,157/mt ($452/mt), increasing by RMB 33/mt ($4.7/mt) or 1.1 percent since January 22, while up 1.12 percent compared to the previous trading day, January 28.
$1 = RMB 6.9771
