Average offer prices for ex-China wire rod have edged up further over the past week, supported by some improvement in local demand, rising freight costs and a surge in ex-ASEAN wire rod prices.
Offers for ex-China wire rod have been heard at $480-500/mt FOB, increasing by $5/mt on average compared to March 5. The tradable prices have been heard at $480-485/mt FOB at the lowest.
During the given week, wire rod prices in the Chinese domestic market have indicated further rises amid improved apparent consumption. Construction sites have resumed activities, exerting a positive impact on the demand for wire rod and bolstering its prices. Meanwhile, shipping and logistics costs will face upward pressure due to rising crude oil prices resulting from the war in the Middle East, and so suppliers have been ready to increase their wire rod prices. It is thought that wire rod prices in the Chinese domestic market will continue their uptrend in the coming week.
Wire rod offer prices from Indonesia’s Dexin Steel are at $510/mt FOB for May shipment, up $15/mt over the past week, following better sales locally.
Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $490/mt FOB.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $505-510/mt CFR, increasing by $5/mt over the past week, but buyers have been avoiding purchases.
As of March 12, rebar futures at Shanghai Futures Exchange are standing at RMB 3,120/mt ($452/mt), increasing by RMB 45/mt ($6.5/mt) or 1.5 percent since March 5, while up 0.42 percent compared to the previous trading day, March 11.
$1 = RMB 6.8959
