SteelOrbis has been informed that Chinese mills’ export offer prices for wire rod have continued to move sideways in the past week at $455-460/mt FOB. The workable level for mills has been assessed at $450/mt FOB, but this level or even $5-10/mt lower is unlikely to attract any interest, sources said. “There have been no deals heard in the given week due to the coronavirus pandemic, which has resulted in lockdowns in countries in Southeast Asia. More supplies will likely circulate into the local market and negatively affect local wire rod prices,” a trader said.
Demand for wire rod has improved in the Chinese domestic market due to the peak season for construction sites. Though inventories have been at relatively high levels, wire rod prices have been slow to fall. However, ferrous metal futures prices in China have declined significantly amid concerns over a possible economic recession due to the coronavirus pandemic worldwide. At the same time, demand from Southeast Asia has also slackened. Accordingly, the outlook for both local and export wire rod sales is mostly bearish for the near future. Traders have bought import billets at $365-375/mt CFR China from the CIS and India, which will drag down wire rod prices, some sources added.
Jiangsu Province-based Shagang Group has kept its offer prices for rebar, high-speed wire rod and bar-in-coil stable for the April 1-10 period.
As of Thursday, April 2, rebar futures at the Shanghai Future Exchange are standing at RMB 3,229/mt ($454.8/mt), decreasing by RMB 112/mt ($15.8/mt) or 3.3 percent since March 26.
$1 = RMB 7.0995