Average offer prices for ex-China wire rod have edged down compared to the previous week due to decreasing rebar futures prices. The situation in Southeast Asia’s wire rod import market has worsened even further with fresh lockdown in the Philippines and low bids from other buyers.
Offers for ex-China wire rod have been heard at $820-860/mt FOB, moving down by $15/mt on average compared to the previous week amid the decreasing trend seen in rebar futures prices in China. “The worsening Covid-19 pandemic in more and more regions in China has exerted a negative impact on construction activities, weakening prices in the spot market and dragging down export offer prices, though market players are optimistic as regards the prospect for the rebar market in the long term, while they are cautious for the short-term forecast,” an international trader said.
As of August 6, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,379/mt ($832/mt), decreasing by RMB 358/mt ($55/mt) or 6.2 percent since July 30.
In Southeast Asia, after some increases in offers last week demand has fallen further, and so sellers have had to adjust. The latest offers for ex-Indonesia and ex-Vietnam BOF wire rod have been heard at $760-765/mt CFR, while last week some mills were even targeting $780/mt CFR. The price level for IF wire rod from Southeast Asia is at $730-740/mt CFR, down by $5/mt over the past week. “Demand is almost absent here. Customers have withdrawn bids,” a source from the Philippines said.
$1 = RMB 6.4625