Offer prices for ex-China wire rod have moved up in the past week amid decent demand in the local market and high levels of iron ore prices. Some other suppliers from Southeast Asia have also continued to offer higher prices, while ex-Vietnam wire rod has been the most competitive in the Asian market recently.
Ex-Vietnam intermediate frequency furnace wire rod has been sold at $465/mt CFR to the Philippines in the past week, while most buyers are holding a wait-and-see stance right now due to the worsening situation with Covid-19, which has negatively affected demand for wire rod in Southeast Asia. This price level is in line with the tradable value last week, but still much lower than most other offers.
Offer prices of wire rod from other blast furnace steelmakers in Southeast Asia, from Indonesia and Malaysia, have been heard at $480-485/mt CFR Thailand. Ex-Vietnam intermediate frequency furnace wire rod prices are among the most competitive at the moment. Offers to the Philippines and China have been heard at $470-475/mt CFR.
Offers for ex-China wire rod have increased by $10/mt compared to last week to $495-505/mt FOB. “The firm trend in local wire rod prices has made steelmakers unwilling to lower export offer prices, while the high levels of iron ore prices have also bolstered ex-China wire rod offer prices,” a trader commented.
As of Thursday, August 13, rebar futures at the Shanghai Futures Exchange are standing at 3,791/mt ($545/mt), decreasing by RMB 67/mt ($9.7/mt) or 1.7 percent since August 6.
$1 = RMB 6.9429