The downward trend of ex-China wire rod wire rod prices has come to an end, while the future trend will depend on the market situation locally.
Offers for ex-China wire rod have been heard at $460-480/mt FOB, moving sideways compared to October 16. The tradable prices have been heard at $455-460/mt FOB. After the fall seen last week, prices stabilized and, if the sentiments locally improve further, export prices are unlikely to resume their downtrend in the near future.
However, during the past week, trade frictions between the US and China have negatively affected market sentiments, resulting in prevailing uncertainties for wire rod exports. Overseas buyers are cautious as regards the future prospects for the wire rod market.
Meanwhile, rebar futures prices at Shanghai Futures Exchange have increased over the past two days, exerting a positive impact on wire rod prices in the Chinese domestic market. Coke prices are expected to increase in the near future amid the big rise of 4.21 percent in coke futures prices on October 23, which will provide solid support for wire rod prices from the cost side. Moreover, the 4th Plenary Session of the 20th CPC Central Committee concluded today, while positive news may be heard in the press release to be issued on October 24, which will likely bolster the mood in the steel segment. It is thought that wire rod prices in the Chinese domestic market will edge up in the coming week.
Ex-Indonesia wire rod offers for January shipment are still at $465/mt FOB after 50,000 mt for December shipment was sold at $460/mt FOB late last week. According to new information, this large volume was for the European market, but the details about the final price, including CBAM risks, have not been disclosed. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $470/mt FOB.
In Southeast Asia, offer prices of SAE1008 6.5 mm wire rod have been heard at $470-480/mt CFR, in line with those heard in most countries like Thailand. But no short position sales at a low level have been reported this week after sales at $450/mt CFR to Vietnam a week ago. However, buyers in the Philippines said that the tradable level for import wire rod would not be above $455-460/mt CFR Manila.
As of October 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,071/mt ($432.5/mt), increasing by RMB 22/mt ($3.1/mt) or 0.7 percent since October 16, while up 0.43 percent compared to the previous trading day, October 22.
$1 = RMB 7.0918
