The decreasing rebar futures prices and the declining iron ore prices exerted a negative impact on ex-China wire rod offer prices. Overseas buyers have been unwilling to conclude purchases for wire rod, also weakening the support to ex-China wire rod offer prices.
Offers for ex-China wire rod have been heard at $500-515/mt FOB, down $5/mt on average compared to May 14. The tradable prices are heard at $500/mt FOB at the lowest mainly for the regional market.
During the given week, wire rod production output increased slightly, while the apparent consumption declined amid the prevailing cautious sentiments. Inventories of wire rod increased, negatively affecting the prices in the Chinese domestic market. On May 21, the stock market of China indicated significant declines, resulting in the prevailing bearish sentiments among market players. It is expected that wire rod prices in the Chinese domestic market will likely soften in the coming week.
Wire rod offer prices from Indonesia’s Dexin Steel are at $520/mt FOB for July shipment, remaining stable over the past week. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $530/mt FOB.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $520-525/mt CFR, decreasing by $10/mt from last week, while some buyers in the Philippines do not see wire rod prices at above $515/mt CFR.
