Average offer prices for ex-China wire rod have remained stable compared to the previous week ahead of the Chinese New Year holiday as most traders have already started to leave the market.
Offers for ex-China wire rod have been heard at $630-660/mt FOB, moving sideways compared to the previous week. “Construction sites have halted construction activities, and most players in the wire rod market have left the market for the long holiday, and so inventory levels have increased sharply, while mainstream steelmakers and traders have suspended giving offer prices for ex-China wire rod,” an international trader said.
The approach of the Chinese New Year holiday has made market players unwilling to adjust their offer prices, while buyers in the overseas market have sought low prices. Accordingly, it has been hard to achieve deals. Importers from the Philippines have been looking for $600/mt CFR or below for wire rod, while the latest position cargoes from China have changed hands at $405-410/mt CFR, as SteelOrbis reported earlier.
As of Thursday, February 4, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,246/mt ($657/mt), decreasing by RMB 29/mt ($4.5/mt) or 0.7 percent since January 28, while rising by 1.94 percent compared to the previous trading day.
$1 = RMB 6.4605