Average offer prices for ex-China wire rod have edged down compared to the previous week due to slack demand in the traditional offseason and the production restrictions due to the 100th anniversary of the founding of the Communist Party of China.
Offers for ex-China wire rod have been heard at $810-830/mt FOB, moving down by $25/mt on average compared to the previous week amid slack demand during the traditional off-season.
“The declining trend in local wire rod prices has made exporters cut their export prices, while a few deals have been heard at $810/mt FOB. Ex-China wire rod prices have room to move down further,” an international trader said.
Offer prices of ex-Southeast Asia wire rod have been heard at $730-750/mt CFR, with the lower end of the range corresponding to ex-Vietnam IF wire rod prices, which are stable week on week, while the higher end reflects offers from Malaysia, down $10/mt from last week.
The sluggish demand in the traditional offseason in Southeast Asia will exert a negative impact on the wire rod market in the coming week and most buyers in the Philippines have still been bidding at not above $720/mt CFR for ex-Southeast Asia wire rod.
It is expected that wire rod prices in the Chinese domestic market may edge down further or fluctuate within a limited range in the coming week.