Average offer prices for ex-China wire rod have moved sideways compared to the previous week, with official offers staying at high levels above $700/mt FOB. At the same time, buyers in the key Southeast Asian market have been asking for discounts, according to information received by SteelOrbis.
Offers for ex-China wire rod have been heard at $700-720/mt FOB, in line with offers in the previous week. There have been some deals heard at this level to South America, but the activity has been very limited. “The export tax rebate may face adjustment and the sharply rising freight rates have caused most exporters to suspend giving offer prices and to leave the market,” an international trader said.
Steelmakers in Tangshan, the key steelmaking hub in China, have been seeking to raise their offer prices for wire rod, while traders said that demand has not improved. The demand for wire rod will likely improve in the near future, which will provide solid support for wire rod prices.
Offers from Southeast Asia, Indonesia and Vietnam in particular have been reported at $675-700/mt CFR to the Philippines, while buyers have been willing to buy at lower levels, with one booking heard from Indonesia at $660/mt CFR Manila. The tradable level for import wire rod to Thailand has remained at $670-680/mt CFR.
As of Thursday, March 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,759/mt ($732/mt), increasing by RMB 72/mt ($11/mt) or 1.54 percent since March 11, while rising by 0.44 percent compared to the previous trading day (March 17).
$1 = RMB 6.4859