Average offer prices for ex-China wire rod have moved up over the past week, following the surge in futures prices early this week. But most major international buyers have been staying on the sidelines, not being ready to accept higher prices.
Offers for ex-China wire rod have been heard at $470-490/mt FOB, increasing by $12.5/mt on average compared to July 17, while reference deal prices have been heard at $465-480/mt FOB, also moving up by $12.5/mt. During the given week, wire rod prices in the Chinese domestic market have moved up amid increasing rebar futures prices. The support from production cost has been firm, while coke prices are likely to see further rises, which will continue to bolster wire rod prices. However, demand from downstream users has not shown a significant improvement, which may negatively affect the wire rod market. It is thought that wire rod prices in the Chinese domestic market may move sideways in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $490/mt FOB, for shipment in October, moving sideways from the middle of last week, but up by $5/mt from last Friday. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $470-480/mt FOB, increasing by $2.5/mt on average compared to July 17. Ex-Vietnam CB300V-D6 wire rod has been offered at $530/mt FOB.
In Southeast Asia, a mainstream trader’s offer prices for 6.5 mm SAE1008 wire rod have been heard at $470-490/mt CFR. But after a number of deals signed at $448-470/mt CFR depending on the country last week, bids have not improved much. “I still don’t think that that anything above $460/mt CFR will work out here, even this level is high and non-VAT offers should be lower,” a Manila-based source said. In Thailand, some higher bids have been heard at $470-475/mt CFR, but the gap between bids and offers remains.
As of July 24, rebar futures at Shanghai Futures Exchange are standing at RMB 3,294/mt ($438/mt), increasing by RMB 161/mt ($22.5/mt) or 5.1 percent since July 17, while up 0.34 percent compared to the previous trading day, July 23.
$1 = RMB 7.1385
