Average offer prices for ex-China wire rod have moved down sharply compared to the previous week amid the significant declines in local prices. At the same time, lower prices have been reported from Southeast Asian wire rod sellers.
Offers for ex-China wire rod have been heard at $880-890/mt FOB, moving down by $130/mt on average compared to the previous week amid the continuous sharp drops in ferrous metal futures and local prices. “Following several rounds of sharp declines in rebar futures, bearish sentiments have prevailed among market players, while the central government has stressed the need to hold commodity prices stable, which may exert a negative impact on the rebar market in the coming period,” an international trader said. There were no inquiries for ex-China wire rod due to the sharp declines in its prices, though some deals made by South Korean buyers were heard at $990/mt FOB late last week.
In Southeast Asia, offers from an Indonesia producer to the Philippines have been heard at $830-835/mt CFR versus $850/mt CFR on average last week. The price indication from Malaysia has been at $840/mt CFR Manila. At the same, some more reasonable prices have started to come from China to the Philippines with at least one offer reported at $880/mt CFR. Among the lowest prices in the market, there has been an offer from India at $815/mt CFR Manila.
As of Thursday, May 20, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,186/mt ($804.5/mt), decreasing by RMB 729/mt ($113/mt) or 12.3 percent since May 13, while decreasing by 4.74 percent compared to the previous trading day (May 19).
$1 = RMB 6.4464