Average offer prices for ex-China wire rod have moved up over the past week amid the rise in futures prices in China and a bit more optimism. At the same time, in the ASEAN region prices have also increased, but without any feedback form customers.
Offers for ex-China wire rod from mills have been heard at $530-550/mt FOB, moving up by $20/mt compared to November 10.
“The increasing trend of rebar futures prices amid the positive impact from the easing of Covid-19 restrictions has bolstered the wire rod market. Meanwhile, China has issued policies to boost the real estate industry, also positively affecting sentiment in the wire rod market. At the same time, inventories of wire rod have been at relatively low levels, which will provide support for prices,” an international trader said.
Offer prices of ex-Malaysia wire rod have been heard at $540/mt CFR, the Philippines, while buyers wanted to buy at $530/mt CFR at the highest. Last week, import prices in the Philippines were at $525-530/mt CFR.
As of Thursday, November 17, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,726/mt ($527/mt), increasing by RMB 188/mt ($26.6/mt) or up 5.3 percent since November 10, while declining by 0.08 percent compared to the previous trading day (November 16).
$1 = RMB 7.0655
