Offer prices for ex-China wire rod have moved up amid decreases seen in wire rod inventory against the backdrop of good demand in the local market. However, demand from overseas markets has been weak and offers from other countries, India and Indonesia in particular, have been more competitive. Accordingly, Chinese wire rod suppliers have been facing difficulty in exports.
SteelOrbis has been informed that Chinese mills’ export prices for wire rod have moved up by $5/mt over the past week to $430-450/mt FOB, following a stable trend in the previous week. At the same time, bids from Southeast Asia have been at $405/mt FOB maximum, sources have said, pushing customers to focus on purchases of needed volumes from suppliers other than China.
Ex-India wire rod has been traded at $420/mt CFR Thailand over the past week.
Due to the lockdown amid the ongoing coronavirus pandemic, Metro Manila in the Philippines will not resume active wire rod purchases until the end of May. Though there has been a rumor about negotiations and a small transaction at $415/mt CFR from Indonesia. Ex-India wire rod offer prices have been heard at $425/mt CFR Vietnam. Bid prices have been at $415/mt CFR, which is, however, $5/mt higher than last week.
“Wire rod producers in China are focused on sales in the local market and have been unwilling to join the severe competition in the export market, and thereby have raised their export offer prices,” said another trader.
As of Thursday, May 14, rebar futures at the Shanghai Future Exchange are standing at RMB 3,445/mt ($486/mt), increasing by RMB 6/mt ($0.8/mt) or 0.17 percent since May 7.
$1 = RMB 7.0948