Average offer prices for ex-China wire rod have moved sideways over the past week, but overall sentiments in the Asian wire rod market have remained weak due to slow demand.
Offers for ex-China wire rod from second-tier mills have been heard at $450-470/mt FOB, remaining unchanged on average compared to May 29, while reference deal prices have been heard at $445-460/mt, FOB, also moving sideways compared to May 29.
During the given week, wire rod prices in China’s export market have moved sideways. Market players have little confidence as regards the future prospects for the wire rod market. Widespread hot weather has exerted a negative impact on the demand for wire rod, weakening its prices. It is expected that wire rod prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at $505/mt FOB, dropping from the previous $520/mt FOB, but this decline was expected since the previous offers were too high and unworkable. Prices of ex-Vietnam wire rod have been heard at $520/mt FOB, not reflecting the current market. Offers for ex-Malaysia wire rod have been heard at $475-480/mt FOB, remaining stable on average compared to May 29.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $470-475/mt CFR.
As of June 5, rebar futures at Shanghai Futures Exchange are standing at RMB 2,959/mt ($411/mt), decreasing by RMB 19/mt ($2.6/mt) or 0.6 percent since May 29, while up 0.14 percent compared to the previous trading day, June 4.
$1 = RMB 7.1865
