Average offer prices for ex-China wire rod have moved up further amid the high levels of iron ore prices and rising rebar futures prices. At the same time, Southeast Asian exporters have also been increasing prices further despite easing demand ahead of Christmas holidays.
Offers for ex-China wire rod have been heard at $640-670/mt FOB, moving up by $25-40/mt compared to the previous week amid the high levels of raw material prices and increasing rebar futures prices. “Christmas holiday and downtrend in local wire rod prices exerted a negative impact on ex-China wire rod prices, though buyers have been interested in Chinese wire rods amid the increasing offer prices from Southeast Asia,” an international trader said.
Offer prices of ex-Indonesia wire rod prices have been heard at $685/mt CFR the Philippines, up around $60/mt week on week.
Steelmakers from China have gained sufficient orders previously, while they have limited wire rod for the export market at the moment, thereby market players thought there will be limited space for ex-China wire rod to edge down in the coming week. Meanwhile, current high levels of wire rod offer prices made downstream users be unwilling to build up stock for winter season.
As of Thursday, December 24, rebar futures at the Shanghai Future Exchange are standing at 4,291/mt ($639/mt), increasing by RMB 116/mt ($18/mt) or 2.8 percent since December 17, while decreasing by 0.39 percent compared to the previous trading day.
$1 = RMB 6.5361