Average offer prices for ex-China wire rod have moved on an uptrend over the past week amid rising rebar futures and increasing billet prices after the holiday. This has resulted in increases in import wire rod prices in Southeast Asia as well, and most market sources agree that in the near future prices will at least remain stable or even move up further at a gradual pace.
Offers for ex-China wire rod have been heard at $500-515/mt FOB, up $5-10/mt on average compared to April 30. The tradable prices are heard at $500-505/mt FOB at the lowest mainly for the regional market, while for distant markets $510/mt FOB or slightly above can work in some cases.
During the given week, rebar futures prices have moved on an upward trend, exerting a positive impact on wire rod prices in the spot market. Bullish sentiments have prevailed among traders, while they are cautious as regards the future prospects for demand for high-priced wire rod. Destocking has progressed smoothly, boosting market sentiments following the Labor Day holiday (May 1-5). Transaction activities have improved compared to the pre-holiday period. It is thought that wire rod prices in the Chinese domestic market will likely edge up in the coming week.
Wire rod offer prices from Indonesia’s Dexin Steel are at $520/mt FOB for July shipment, stable over the past week. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $530/mt FOB.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $520-530/mt CFR, adding $5-10/mt on average from late April.
As of May 7, rebar futures at Shanghai Futures Exchange are standing at RMB 3,273/mt ($478/mt), increasing by RMB 59/mt ($7.0/mt) or 1.8 percent since April 30, while up 0.83 percent compared to the previous trading day, May 6.
$1 = RMB 6.8487
