Average offer prices for ex-China wire rod have seen a $20-25/mt fall this week due to rapidly dropping futures prices, weak local demand, and increasing concerns regarding the general state of the Chinese market. As a result, Chinese wire rod has become the most competitive in the Asian market again, though buyers are still cautious.
Offers for ex-China wire rod from the second-tier mills have been heard at $460-470/mt FOB, moving down by $20/mt on average compared to last week, while reference deal prices have been heard at $455-460/mt FOB, down by $20-25/mt week on week. After such a sharp drop, ex-China wire rod prices have become the most competitive in the Asian market.
During the given week, wire rod prices in the Chinese domestic market have moved down significantly amid decreasing rebar futures prices. Panic sentiments have prevailed among market players, exerting a negative impact on the wire rod market. However, market analysts believe that, following the previous quick decreases, wire rod prices may edge down by further slight margins in the coming week or stabilize at the current low levels, according to market sources.
Wire rod offer prices from Indonesia’s Dexin have been heard at $470/mt FOB, decreasing by $10/mt compared to last week. However, market sources said that $465/mt FOB should be easily achievable. Offers of ex-Malaysia wire rod have been heard at $465-470/mt FOB, declining by $15-20/mt on average, and offer prices of from Vietnam-based Hoa Phat have been heard at $485/mt FOB, moving down by $10/mt on average.
In the Southeast Asian import market, the price assessments for Q195 wire rod are at $475-485/mt CFR, down from $490-495/mt CFR last week.
