Average offer prices for ex-China wire rod have edged up slightly over the past week amid the rising rebar futures prices and general improvement in the local Chinese market. But optimism has been constrained by weak demand overseas and not that good sales as expected locally.
Offers for ex-China wire rod have been heard at $490-500/mt FOB, up $5/mt on average compared to April 16. The tradable prices have been heard at $495/mt FOB at the lowest.
During the given week, rebar futures prices have moved on an uptrend, exerting a positive impact on wire rod prices in the spot market. However, overall market sentiment remained subdued, weakening the support to wire rod market. Since the Labor Day (May 1-5) holiday is approaching, market players expected that downstream users might build up stock, which will bolster its prices. It is thought that wire rod prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin Steel have declined by $5/mt the week at $520/mt FOB for June shipment. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $510-520/mt FOB.
In Southeast Asia, mainstream tradable prices for wire rod have been heard at $505-520/mt CFR, increasing by $5/mt over the week. Most offers for SAE1008 have been starting from $515-520/mt CFR, but for Q195 material they have been mainly at $500-510/mt CFR early this week.
As of April 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,181/mt ($464/mt), increasing by RMB 48/mt ($7.0/mt) or 1.5 percent since April 16, while up 0.09 percent compared to the previous trading day, April 22.
$1 = RMB 6.865
