Average offer prices for ex-China wire rod have moved sideways over the past two weeks, so other exporters, from the ASEAN region in particular, have also been keeping their offers stable, hoping for better market conditions within a few weeks.
Offers for ex-China wire rod from secondary steel mills have been heard at $470-485/mt FOB, moving sideways on average compared to January 23, while reference deal prices have been heard at $465-475/mt FOB, also remaining stable compared to January 23.
During the given period, wire rod prices in the Chinese domestic market have remained stable due to the Chinese New Year holiday. Most market players may not come back to the market until after the Lantern Festival holiday, contributing to quiet transaction activities in the wire rod market. It is expected that wire rod prices in the Chinese domestic market will gradually see a rebounding trend from mid-February.
Offer prices of ex-Indonesia wire rod have been heard at $470/mt FOB, for shipment in March, remaining stable from the pre-holiday period. The producer from Indonesia has been maintaining a different stance for different products - keeping billet and wire rod prices stable, but agreeing to some discounts for slabs, which have been offered at $430/mt FOB. Offer prices of ex-Malaysia wire rod have been heard at $490-495/mt FOB.
As of February 6, rebar futures at Shanghai Futures Exchange are standing at RMB 3,357/mt ($468/mt), increasing by RMB 5/mt ($0.7/mt) since January 23, while up 0.6 percent compared to the previous trading day, February 5.
$1 = RMB 7.1691