Average offer prices for ex-China wire rod have edged up further amid increasing iron ore prices, rising ferrous metal futures prices and prevailing bullish sentiments.
Offers for ex-China wire rod have been heard at $615-630/mt FOB, moving up by $20-30/mt compared to the previous week amid surging raw material prices and rising rebar futures prices. “The prevailing bullish sentiments and quite good demand have bolstered ex-China wire rod offer prices, while steelmakers suspended giving offer prices after selling their quotas for this week at $630/mt FOB,” an international trader said.
Offer prices of ex-Southeast Asia wire rod prices have been heard at $620-630/mt CFR, up $15-20/mt week on week, while buyers from the Philippines have only bid at $600-610/mt CFR.
The high levels of wire rod prices in the local market in China have exerted a negative impact on market players’ willingness to build up their stocks for the winter season, resulting in decreasing inventory levels and bolstering prices. At the same time, speculation in the iron ore futures market still prevailed, providing solid support for wire rod prices.
As of Thursday, December 17, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,175/mt ($639/mt), increasing by RMB 135/mt ($21/mt) or 3.34 percent since December 10, while up 1.73 percent compared to the previous trading day.
$1 = RMB 6.5362