Average offer prices for ex-China wire rod have edged up slightly over the past week, but they have remained more competitive than ex-ASEAN prices after the hike seen last week. Trading in Asia has been on pause due to the bid-offer mismatch and the holidays, while import interest in Europe for ex-ASEAN wire rod has also slowed down.
Offers for ex-China wire rod from second-tier mills have been heard at $460-475/mt FOB, increasing by $5/mt on average compared to March 20, while reference deal prices have been heard at $455-465/mt FOB, also rising by $5/mt over the week.
During the given week, demand for wire rod from downstream users has been slack, resulting in the prevailing cautious sentiments among market players. The supply of wire rod has increased slightly, exerting a negative impact on prices. Rebar futures prices saw week-on-week rises, while starting to edge down on March 27, reflecting bearish sentiments. The US has announced tariffs on the main countries it considers to be responsible for its trade deficit, negatively affecting market sentiments. It is thought that wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been heard at stable levels of $490-495/mt FOB, but after the previous sales the mill has started to offer for July shipment. Offer prices of ex-Malaysia wire rod have been heard at $485/mt FOB.
Counter-offers for wire rod from buyers in Southeast Asia have been heard at $475/mt CFR aat the highest, while most offers are above $480/mt CFR.