Average offer prices for ex-China wire rod have edged up slightly over the past week amid the rebound in overseas steel demand after the recent holiday and also the support coming from costs, though futures prices have stopped increasing, limiting the positive mood.
Offers for ex-China wire rod have been heard at $510-515/mt FOB, up $5/mt on average compared to May 7. The tradable prices are heard at $505/mt FOB at the lowest, mainly for the regional market.
Increasing iron ore prices have pushed up ex-China wire rod offer prices, while shipping disruptions have also bolstered prices. Since the beginning of the second quarter this year, the order intake of Chinese wire rod producers has been healthy. Bolstered by Saudi Arabia's Vision 2030, wire rod demand from this destination is robust, exerting a positive impact on China’s wire rod exports.
However, during the given week, rebar futures prices have edged down slightly, weakening the support to wire rod prices. US President Trump embarked on a state visit to China on May 13, while China’s financial markets did not perform well on May 14, negatively affecting market sentiments in the steel industry. It is expected that wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin Steel are at $520/mt FOB for July shipment, moving sideways 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 $530-540/mt CFR, adding $10/mt on average from last week.
As of May 14, rebar futures at Shanghai Futures Exchange are standing at RMB 3,255/mt ($478/mt), decreasing by RMB 18/mt ($7.0/mt) or 0.55 percent since May 7, while up 0.15 percent compared to the previous trading day, May 13.
$1 = RMB 6.8401
