Ex-China wire rod prices down further, attract demand in SE Asia

Thursday, 29 September 2022 17:22:57 (GMT+3)   |   Shanghai
       

Average offer prices for ex-China wire rods have moved down over the past week. Moreover, traders have been more active and have managed to sell to Southeast Asia as ex-China prices have become the most competitive in the region.

Offers for ex-China wire rod from mills have been heard at $560-590/mt FOB, down by $10/mt on average compared to September 22. But traders have been even more flexible, offering $580/mt CFR in Southeast Asia. Moreover, a few deals for ex-China wire rods were signed at $570/mt CFR Manila last week. “These were definitely sales in positions. I believe that after the Chinese holiday sellers may want to increase prices, so for buyers the prices now may be the lowest,” a local trader in the Philippines said.

At the same time, ex-ASEAN wire rod offers have been at $585/mt CFR, relatively stable from last week, which means that Indonesian and Malaysian wire rods have lost their leading positions and have no advantage against Chinese supplies at the moment.

“Supply of wire rod has decreased in the given week, while demand from downstream users has improved inside China, resulting in declines in inventory levels, while the repeated outbreaks of the Covid-19 pandemic may negatively affect the wire rod market,” an international trader said.

As of Thursday, September 22, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,836/mt ($539.5/mt), increasing by RMB 71/mt or up 1.9 percent since September 22, while rising by 0.13 percent compared to the previous trading day (September 28).

$1 = RMB 7.1102


Similar articles

Turkey seeks to raise rebar export offers, demand mostly seen locally

27 Mar | Longs and Billet

Japanese crude steel output down 3.8 percent in February from January

27 Mar | Steel News

Saudi Arabia’s Hadeed keeps local longs prices stable again for April

26 Mar | Longs and Billet

Local Turkish official domestic wire rod prices follow diverse trends

26 Mar | Longs and Billet

Iskenderun-based Turkish mill issues its longs prices

26 Mar | Longs and Billet

Some EU flat steel import quotas about to be exhausted near end of period

26 Mar | Steel News

Local wire rod quotations in Indian market - week 13, 2024

26 Mar | Longs and Billet

Local Chinese longs prices up $7-8/mt amid improved demand

25 Mar | Longs and Billet

Stocks of main finished steel products in China down 0.6 percent in mid-March

25 Mar | Steel News

Lebanese rebar market quiet while import prices drop

22 Mar | Longs and Billet