Average offer prices for ex-China wire rod have moved up further, by $20/mt this week amid the rising ferrous metal futures prices in China and production curbs in Tangshan. Southeast Asian wire rod exporters are also bullish, even though demand in the region has remained weak.
Offers for ex-China wire rod have been heard at $700-720/mt FOB, moving up by $20/mt compared to the previous week. A single deal has been heard at $715/mt FOB to South America. “The rising trend in rebar futures prices and the production restrictions in Tangshan in Hebei Province for environmental protection purposes for the National People's Congress and the Chinese Political Consultative Conference (NPC & CPPCC) have bolstered ex-China wire rod prices, while ASEAN-based wire rod suppliers have also eyed big rises,” an international trader said.
Offers from Indonesia and Vietnam have been reported at $680-690/mt CFR to the Philippines, up $25-30/mt compared to last week. But rare bids have been lagging far behind, being at just around $650-660/mt CFR. Last week, the tradable levels were at $640-645/mt CFR.
As of Thursday, March 4, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,686/mt ($726.5/mt), increasing by RMB 163/mt ($25/mt) or 3.48 percent since February 25, while rising by 0.1 percent compared to the previous trading day (March 3).
$1 = RMB 6.4758