Average offer prices for ex-China wire rod have edged up slightly compared to the previous week amid rising local wire rod prices, but the number of export offers has declined due to the issue of the anticipated export tax rebate cut.
Offers for ex-China wire rod have been heard at $710-730/mt FOB, moving up by $10/mt compared to the previous week. Most steelmakers have stopped giving export offer prices due to the pending announcement of the export tax rebate policy. “The firm demand in the local market will bolster ex-China wire rod prices, though clear information regarding the export tax rebate will affect the market,” an international trader said.
The production curbs in Tangshan will provide solid support for wire rod prices. The sharply rising freight rates have caused both buyers and sellers to be cautious as regards the future prospects for the market.
Offers from Southeast Asia, from Indonesia and Malaysia in particular, have been reported at $690/mt CFR to the Philippines, moving sideways compared to the previous week, while still higher than buyers’ expectations at $670/mt CFR at the highest.
As of Thursday, March 25, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,795/mt ($735/mt), increasing by RMB 36/mt ($5.5/mt) or 0.8 percent since March 18, while rising by 1.3 percent compared to the previous trading day (March 24).
$1 = RMB 6.5282