SteelOrbis has been informed that Chinese mills’ wire rod export offer prices have moved sideways at $470-480/mt FOB in the past week. “Demand for wire rod has slackened amid more northern supplies arriving in the southern market, resulting in a sluggish performance in the domestic and export wire rod market, though rising futures prices will add some uncertainties,” a trader said.
Offers for Malaysia-origin wire rod have been heard at $475-480/mt CFR Philippines, stable week on week.
During the given week, major Chinese steelmaker Shagang has cut its offer prices for high-speed wire rod by RMB 150/mt ($21/mt) for mid-December, but has kept its offer prices for rebar stable, signaling bearish sentiment on the future prospects for the wire rod market.
However, as of Thursday, December 12, rebar futures prices at the Shanghai Future Exchange are standing at RMB 3,749/mt ($533.7/mt), increasing by RMB 164/mt ($4.7/mt) or 4.6 percent since December 5. Nevertheless, it is unlikely that wire rod prices have much room to go up further, sources said.
$1 = RMB 7.025