Prices for ex-China wire rod have moved up over the past week amid better outlook for the market owing to announced supply reforms, expected stimuli measures in September and rather positive expectations for «golden October».
Offers for ex-China wire rod have been heard at $460-475/mt FOB, increasing by $7.5/mt on average compared to that recorded on July 3, while reference deal prices have been heard at $455-465/mt FOB, also up $7.5/mt over the week.
During the given week, wire rod prices in the Chinese domestic market have edged up slightly amid the increasing rebar futures prices. The relevant departments of China stressed that China will orderly eliminate the backward production capacity, exerting a positive impact on market sentiments and pushing up rebar futures prices. However, the demand for wire rod from downstream users has been slack in the traditional off-season due to the high temperature. It is thought that wire rod prices in the Chinese domestic market will edge up slightly more in the coming week.
Offer prices of Indonesian wire rod have been heard at $490/mt FOB, for October shipment, remaining stable on average compared to July 3, while offer prices of ex-Malaysia SAE1006 wire rod have been heard at $480/mt FOB. Prices of ex-Vietnam CB300V-D6 wire rod are at $535/mt FOB, moving sideways week on week.
In Southeast Asia, small deal to the Philippines for Q235 wire rod (non-VAT) was reported as done at $455-460/mt CFR early last week. But mainstream offer prices of SAE1008 6.5 mm wire rod have been heard at $465-475/mt CFR early this week and up to $480/mt CFR today.
As of July 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,123/mt ($430/mt), increasing by RMB 47/mt ($6.6/mt) or 1.5 percent since July 3, while up 1.89 percent compared to the previous trading day, July 9.
$1 = RMB 7.151
