Average offer prices for ex-China wire rod have remained stable over the past week with some rebound in futures prices and a better outlook for the near future. However, in general the wire rod market in the Asian region has remained negative and buyers in Southeast Asia have been waiting for further declines, seeing very low demand.
Offers for ex-China wire rod have been heard at $570-600/mt FOB, remaining stable compared to April 13. “During the given week, the inventory levels of wire rod in the local market have decreased, which bolstered prices to some extent, while the approach of the Labor Day holiday (April 29-May 3) may slacken the demand for wire rod. Some steelmakers have announced implementation of maintenance works and reductions in production of wire rod, which may exert a positive impact on prices, though declining iron ore prices may weaken the support for wire rod prices,” an international trader said.
Reference import prices of wire rod in Southeast Asia have been heard at $570-590/mt CFR, in line with the average of $580/mt CFR reported last week. Only small volumes of ex-China wire rod were sold in positions to the Philippines a week ago, but in general buyers have been uninterested in purchases.
As of Thursday, April 20, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,914/mt ($567.5/mt), rising by RMB 28/mt ($4.1/mt) or up 0.72 percent since April 13, while declining by 0.66 percent compared to the previous trading day (April 19).
$1 = RMB 6.8987