SteelOrbis has been informed that Chinese export offer prices for wire rod have remained at $470-485/mt FOB during the week ending September 25, following the decline announced last week. Though demand from foreign customers has been not very strong, some improvement in the local market and the approaching holidays have led to a stabilization of export prices.
Traders have been offering Malaysian-origin wire rod at $470/mt CFR to the Philippines and some small discounts are still possible.
As the National Day holiday is approaching, production restriction measures have been implemented in Hebei and other provinces, boosting sentiment among Chinese market players. Rebar futures at Shanghai Future Exchange have increased by RMB 110/mt ($15.6/mt) since last Friday, reaching RMB 3,498/mt ($494.6/mt) on Wednesday, September 25. Meanwhile, 62 percent Fe content Australian iron ore prices have declined from $96.1/mt CFR last Friday to $89.5/mt CFR on September 24.
Local wire rod prices will likely move sideways in the near future, which will provide some support for Chinese wire rod export prices.