Average offer prices for ex-China wire rod have moved up over the past week, setting the tone in the Asian wire rod market. The increase came amid some limitations of supply planned on August 16-September 3 and cost support, but, with the seasonal weakening of demand, the market is expected to remain stable in the near future.
Offers for ex-China wire rod have been heard at $470-490/mt FOB, up by $5/mt on average compared to last week, with the second-tier mills have been offering at the lower end of the range and the large mills at the higher end of the range. The tradable prices have been heard at $465-480/mt FOB, also rising by $5/mt.
During the given week, the production cut announcement in Tangshan, the major steelmaking hub in Hebei Province in China, has exerted a positive impact on market sentiments. Moreover, coke prices have moved up further, providing support for wire rod prices from the cost side. Inventories of wire rod have been at relatively low levels, bolstering prices. However, apparent consumption has decreased. It is expected that wire rod prices in the Chinese domestic market may be stable or even go down slightly in the week ahead.
Wire rod offer prices from Indonesia’s Dexin have been heard at $495/mt FOB for October shipment, remaining unchanged over the past week.
Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $490/mt FOB, up $15/mt week on week, and offers of ex-Vietnam CB300V-D6 wire rod have been heard at $535/mt FOB, moving sideways on average week on week.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $480/mt CFR, moving up by $5-10/mt on average week on week.
