Prices for ex-China wire rod have moved down over the past week, following significant losses in futures prices and despite some expectations for stimulus measures in China.
Offers for ex-China wire rod have been heard at $450-465/mt FOB, decreasing by $7.5/mt compared to that recorded on December 4. The tradable prices have been heard at $445-460/mt FOB.
During the given period, rebar futures prices at Shanghai Futures Exchange have moved down significantly, exerting a negative impact on wire rod prices in the Chinese domestic market. Rumors said that China will likely issue a support policy of providing a mortgage interest subsidy of one percent to boost the real estate industry, which has positively affected market sentiments. Meanwhile, on December 11, major Chinese steelmaker Shagang Group announced stable wire rod prices for December 11-20, bolstering the wire rod market to a certain degree. As a result, even though demand is expected to remain weak in the near future, wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin are at $465/mt FOB and the producer has managed to sell up to 40,000 mt of the material for February shipment.
Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $475/mt FOB, moving up by $5/mt over the past week.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $460-480/mt CFR. The lowest end of the range - $460-465/mt - corresponds to negotiations for Chinese non-VAT wire rod.
As of December 11, rebar futures at Shanghai Futures Exchange are standing at RMB 3,069/mt ($433.5/mt), decreasing by RMB 106/mt ($15/mt) or 3.3 percent since December 4, while down 1.32 percent compared to the previous trading day, December 10.
$1 = RMB 7.0686
