Average offer prices for ex-China wire rod have edged up over the past week, but they have been the most competitive in the Asian region, considering the sharp increase in ex-ASEAN offers after the latest sales to Europe.
Offers for ex-China wire rod from the second-tier mills have been heard at $450-460/mt FOB, increasing by $5/mt on average compared to April 10, while large mills have been asking for $470/mt FOB and higher.
During the given week, demand for wire rod in the Chinese domestic market has been limited, negatively affecting prices. China now faces tariffs of up to 245 percent on imports into the US, which has exerted a negative impact on the wire rod market. Wire rod exports will likely decline in April, while supplies may instead be circulated into the domestic market and weaken domestic wire rod prices. It is thought that wire rod prices in the Chinese domestic market will likely edge down in the coming week.
Wire rod offer prices from Indonesia’s Dexin have increased by $25/mt over the past week to $520/mt FOB, with the offers being for September shipment. The current price is nominal and too high for all major markets, signaling that the mill is not in the market after sales done earlier at $495-505/mt FOB to distant markets like Europe. The mill has sold over 40,000 mt of wire rod to Europe since last Friday, according to sources. "I believe that Indonesian wire rod exports to the EU used to be restricted to around 18,000 mt per quarter by quota, but not anymore," a trader said.
Offer prices of ex-Malaysia wire rod for regional buyers have been heard at $480-485/mt FOB.
In Southeast Asia’s import wire rod market, some small-volume deals for ex-China origin wire rod have been reported at $475-485/mt CFR, increasing by $10/mt from early April.
