Average offer prices for ex-China wire rod have edged up slightly over the past week amid the rising costs and transportation expenses due to the ongoing geopolitical tensions in the Middle East.
Offers for ex-China wire rod have been heard at $495-505/mt FOB, increasing by $5/mt on average compared to March 19. The tradable prices have been heard at $490/mt FOB at the lowest.
During the given week, wire rod prices in the Chinese domestic market have indicated slight rises amid the increasing iron ore prices. Part of Chinese wire rod producers raised their prices to ease the pressure from the rising production costs. The city of Tangshan, a key steelmaking hub in China’s Hebei Province, has decided to initiate a level II emergency response as of 6:00 on March 25, aiming to alleviate pollution, which may result in the shrinking supply to the market and bolster the wire rod prices in the near future. A level II emergency mean that all mills will have to lower utilization rates by 30 percent. China’s financial market has witnessed declines again on March 26, exerting a negative impact on market sentiments. It is expected 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 Steel are at $520/mt FOB for June shipment, remaining stable from the past week.
Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $495-505/mt FOB.
In Southeast Asia, mainstream tradable prices of 6.5 mm SAE1008 wire rod have been heard at $510-525/mt CFR, increasing by $5/mt on average over the past week.
As of March 26, rebar futures at Shanghai Futures Exchange are standing at RMB 3,128/mt ($453/mt), decreasing by RMB 7/mt ($1/mt) or 0.2 percent since March 19, while down 0.35 percent compared to the previous trading day, March 25.
$1 = RMB 6.9056
