Average offer prices for ex-China wire rod have edged down compared to the previous week due to slacker demand with the arrival of the rainy season in eastern China.
Offers for ex-China wire rod have been heard at $850-870/mt FOB, moving down by $10/mt on average compared to the previous week amid prevailing cautious sentiments. While the lower end of the range has remained stable, the higher end has lost $20/mt over the past week.
“The rainy season in eastern China negatively affected demand for wire rod in the local market, exerting a negative impact on prices, while the Covid-19 pandemic and the rainy weather in Southeast Asia hit buyers’ sentiments,” an international trader said.
Offer prices of ex-Southeast Asia wire rod have been mostly stable at $760-770/mt CFR to the Philippines. But bids have been rare and at much lower levels - at $720-730/mt CFR.
As of June 11, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,322/mt ($833/mt), increasing by RMB 163/mt ($25.5/mt) or 3.16 percent since June 4. Futures have posted a strong rise of 3.74 percent today compared to yesterday, reflecting stronger sentiments in the local market in China amid the new round of production restrictions in Tangshan aimed at improving air quality.
$1 = RMB 6.3856