Average ex-China wire rod offer prices have edged up slightly over the past week amid higher futures, strong raw material prices and reduced supply. However, with the continuing weakness of demand, prices are expected to stabilize at the current levels.
Offers for ex-China wire rod have been heard at $455-475/mt FOB, edging up by $5/mt compared to November 27. Tradable prices have been heard at $450-465/mt FOB.
During the given period, rebar futures prices at Shanghai Futures Exchange have moved up, positively affecting wire rod prices in the Chinese domestic market. Both supply and demand in the wire rod market are weak, resulting in the prevailing cautious sentiments among market players. Meanwhile, following the rises seen since the beginning of last week, iron ore prices have decreased over the past few days, weakening the support for wire rod prices from the cost side. It is thought that wire rod prices in the Chinese domestic market will likely move sideways in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at stable levels of $465/mt FOB for February shipment, while prices of ex-Malaysia SAE1006 wire rod have been at $470/mt FOB.
In Southeast Asia, mainstream offer prices of SAE1008 6.5 mm wire rod have been heard at $475-480/mt CFR, but some non-VAT Chinese material can be priced at $465/mt CFR.
As of December 4, rebar futures at Shanghai Futures Exchange are standing at RMB 3,175/mt ($449/mt), increasing by RMB 82/mt ($11.6/mt) or 2.65 percent since November 27, while up 0.35 percent compared to the previous trading day, December 3.
$1 = RMB 7.0733
