Average offer prices for ex-China wire rod have moved up significantly over the past week to $535-545/mt FOB, up $15/mt from the previous week’s level.
“The bullish financial market pushed up rebar futures prices significantly, which exerted a positive impact on local billet and wire rod prices amid the appreciation of the Chinese currency,” an international trader said.
Offer prices of ASEAN origin wire rod have been heard at $520-530/mt CFR Philippines, up by $20/mt, while there have been limited transaction activities due to sharp price increase and worse market sentiment in the Philippines due to bad weather conditions.
In the Chinese domestic market, compared with the previous week, inventories have declined, signaling good demand for wire rod amid decreases in supply caused by production restrictions.
As of Thursday, November 12, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,832/mt ($578.5/mt), increasing by RMB 84/mt ($12.7/mt) or 2.24 percent since November 5, while down 0.23 percent compared to the previous trading day.
$1 = RMB 6.6236