Average offer prices for ex-China wire rod have indicated slight rises over the past week, while ex-ASEAN offers have posted even bigger rises after some previous sales. However, market sources doubt that big price increases will be easily accepted in the near future, with sentiments being only cautiously optimistic.
Offers for ex-China wire rod have been heard at $480-490/mt FOB, edging up by $2.5/mt on average compared to February 26. The tradable prices have been heard at $480-485/mt FOB.
During the given week, wire rod prices in the Chinese domestic market have edged up slightly as demand from downstream construction sites has been released smoothly. Against the backdrop of tight shipping schedules in the April to May period due to the war in the Middle East and foreign exchange volatility risks, steel mills have adopted a more cautious strategy, showing greater preference for securing high-priced orders rather than proactively offering discounts to achieve deals. If the actual demand for wire rod in the export market does not improve in March and April, the high-priced offer strategy may not continue. In the Chinese domestic market, the inventories of wire rod have exerted a negative impact on prices. However, policies to support the real estate industry have bolstered market sentiments to a certain degree. It is expected that wire rod prices in the Chinese domestic market will likely fluctuate within a limited range or rebound slightly in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $495/mt FOB for May shipment, up by $10/mt over the past week, and even $500/mt FOB has been voiced on March 5.
Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $490/mt FOB.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $500-505/mt CFR, while some offers are up to $515-520/mt CFR.
As of March 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,075/mt ($446/mt), increasing by RMB 12/mt ($1.7/mt) or 0.4 percent since February 26, while up 0.1 percent compared to the previous trading day, March 4.
$1 = RMB 6.9007
