Average offer prices for ex-China wire rod have moved sideways over the past week, while some increase is expected in the near future amid decreases in supplies and increasing rebar futures prices.
Offers for ex-China wire rod have been heard at $485-495/mt FOB, moving sideways on average compared to April 9. The tradable prices have been heard at $490/mt FOB at the lowest.
During the given week, rebar futures prices have moved up, positively affecting sentiments in the wire rod market. Downstream users have concluded purchases of wire rod, resulting in improving transaction activities. The apparent consumption of wire rod has been better than in the previous week, bolstering prices to a certain degree. Meanwhile, the supply of wire rod has been tight, providing some support for prices. It is thought that wire rod prices in the Chinese domestic market will edge up in the coming week amid anticipated inventory restocking ahead of the Labor Day (May 1-5) holiday.
Wire rod offer prices from Indonesia’s Dexin Steel are at $525/mt FOB for June shipment, up by $5/mt over the past week, but stable compared to the previous day, even though the mill has announced a further increase for billets. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $515-520/mt FOB.
Nevertheless, this week the workable wire rod prices in Southeast Asia have weakened under pressure from subdued demand and from low bids. Mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $510/mt CFR, down by $10/mt over the past week. Offer prices for Q195 wire rod have been heard at $500-510/mt CFR, but customers have been waiting for $490/mt CFR. It is unlikely that prices in Southeast Asia will be corrected down further, considering the improved mood in China’s export markets.
As of April 16, rebar futures at Shanghai Futures Exchange are standing at RMB 3,133/mt ($457/mt), increasing by RMB 37/mt ($5.4/mt) or 1.2 percent since April 9, while up 1.06 percent compared to the previous trading day, April 15.
$1 = RMB 6.8616
