Average offer prices for ex-China wire rod have moved sideways compared to last week, following the sharp drop recorded then, but prices still have room to go down, taking into account the weakening of the local market. The sentiment in the import market in Southeast Asia has continued to worsen.
Offers for ex-China wire rod have been heard at $880-890/mt FOB, moving sideways on average compared to the previous week. “Continuous decreases in local wire rod prices have exerted a negative impact on overseas buyers’ sentiments, and so some steelmakers have stopped giving offer prices. Rumors of possible export duties on ex-China wire rod have made it hard to export, and the approaching rainy season in eastern China may curb demand for wire rod in the local market,” an international trader said.
Regional wire rod suppliers have had to lower prices further in Southeast Asia as demand has been weak and billet prices have been falling rapidly. Offer prices from Southeast Asian mills have been reported at $780-795/mt CFR Manila, versus $830-840/mt CFR a week ago. Some sources said that it is possible to see even some lower levels, but they are unlikely to result in deals. Buyers have been very cautious recently and market sources said that demand may be seen in the Philippines at price levels which hardly exceed $720/mt CFR.