Average offer prices for ex-China wire rod have moved sideways over the past week as the market has been impacted by seasonally weak demand but supported by high costs amid strong iron ore prices and some gains seen in futures prices during the week. But, in general, in Asia the mood is rather negative.
Offers for ex-China wire rod have been heard at $450-470/mt FOB, moving sideways compared to that recorded on November 20. The tradable prices have been heard at $445-460/mt FOB.
During the given period, rebar futures prices at Shanghai Futures Exchange have moved up, exerting a positive impact on wire rod prices in the Chinese domestic market. Iron ore prices are higher as well. Since the weather is getting colder and colder, the gap between supply and demand in the wire rod market has increased, weakening market sentiments. Lately, coking coal prices have declined and there are expectations of decreases in coke prices, which may negatively affect the support for wire rod prices. 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 have been at $462/mt FOB, moving down by $3/mt over the past week. Even though the supplier is offering only for February shipment, weak demand has impacted sentiments. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $465-470/mt FOB. Ex-Vietnam wire rod offers start from $500/mt FOB.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $460-480/mt CFR, similar to last week.
As of November 27, rebar futures at Shanghai Futures Exchange are standing at RMB 3,093/mt ($436/mt), increasing by RMB 43/mt ($6.1/mt) or 1.4 percent since November 20, while down 0.13 percent compared to the previous trading day, November 26.
$1 = RMB 7.0779
