Average offer prices for ex-China wire rod have moved down, reflecting poor demand and the weakness of the local market. Non-VAT offering from China continues.
Offers for ex-China wire rod have been heard at $455-470/mt FOB, moving down by $5-10/mt compared to October 30. The tradable prices have been heard at $450-460/mt FOB.
During the given period, rebar futures prices at Shanghai Futures Exchange have moved down, exerting a negative impact on wire rod prices in the Chinese domestic market. Production restrictions in some regions of China have bolstered wire rod prices to a certain degree. At the same time, the third round of hikes in coke prices has positively affected wire rod prices from the cost side. However, demand for wire rod from downstream users may be slacker in the traditional offseason, which will weaken the support for prices. Cautious sentiments prevail among market players.
Wire rod offer prices from Indonesia’s Dexin have been heard at $465/mt FOB today, coming back to the level seen two weeks back after a brief increase to $470-473/mt FOB last week.
In Southeast Asia, offer prices of SAE1008 6.5 mm wire rod have been heard at $470-475/mt CFR, but for non-VAT material prices have been at $455-460/mt CFR, with some small deals rumored.
As of November 6, rebar futures at Shanghai Futures Exchange are standing at RMB 3,037/mt ($428/mt), decreasing by RMB 69/mt ($9.7/mt) or 2.2 percent since October 30, while up 0.4 percent compared to the previous trading day, November 5.
$1 = RMB 7.0865
