Average offer prices for ex-China wire rod have remained stable over the past week, though overall sentiments are still rather weak and futures prices have continued to decline slowly.
Offers for ex-China wire rod have been heard at $475-485/mt FOB, moving sideways compared to February 5. The tradable prices have been heard at $470-480/mt FOB.
During the given week, wire rod prices in the Chinese domestic market have moved sideways amid quiet demand from downstream users. The market is basically at a standstill ahead of the Chinese New Year holiday (February 14-23). It is thought that wire rod prices in the Chinese domestic market will move sideways in the coming period.
Wire rod offer prices from Indonesia’s Dexin have been heard at $485/mt FOB. Even though the offer for April shipment is down by $5/mt compared to late January, the offer level was already high and most market sources see this as a correction during a period of zero demand.
In Southeast Asia, mainstream offer prices of SAE1008 6.5 mm wire rod have been stable at $490-495/mt CFR, while some buyers in the Philippines and Thailand are waiting for $480-485/mt CFR after the long holiday.
As of February 12, rebar futures at Shanghai Futures Exchange are standing at RMB 3,050/mt ($439/mt), decreasing by RMB 51/mt ($7.3/mt) or 1.6 percent since February 5, while down 0.23 percent compared to the previous trading day, February 11.
$1 = RMB 6.9457
