Average offer prices for ex-China wire rod have moved up over the past week, reflecting better local sentiments, but the overall mood in the Asian market has failed to improve much ahead of the Chinese New Year holiday, with mills in the ASEAN region keeping their prices relatively stable.
Offers for ex-China wire rod from second-tier mills have been heard at $470-485/mt FOB, moving up by $7.5/mt on average compared to January 16, while reference deal prices have been heard at $465-475/mt FOB, also up $7.5/mt compared to January 16.
During the given week, wire rod prices in the Chinese domestic market have fluctuated within a limited range amid slight increases in rebar futures prices. As the Chinese New Year holiday (January 28-February 4) is approaching, transaction activities will be quieter. Recently, the Central Financial Commission, the Central Financial Office, the China Securities Regulatory Commission, the Ministry of Finance, the Ministry of Human Resources and Social Security, the People's Bank of China, and the General Administration of Financial Supervision jointly issued the ‘Implementation Plan on Promoting Medium- and Long-Term Funds to Enter the Market’, which has exerted a positive impact on market sentiments. Market sources believe that wire rod prices in the Chinese domestic market will move sideways in the coming week and will likely rebound after the long holiday.
Wire rod offer prices from Indonesia’s Dexin have been heard at $470/mt FOB, for shipment in March, while ex-Malaysia wire rod offer prices have been heard at $490-495/mt FOB.
As of January 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,352/mt ($467.5/mt), increasing by RMB 25/mt ($3.5/mt) since January 16, while up 0.57 percent compared to the previous trading day, January 22.
$1 = RMB 7.1708