Average offer prices for ex-China wire rod have moved sideways compared to the previous week as the declines in iron ore prices have weakened support for wire rod prices, while production cuts in the second half of the year are providing some support.
Offers for ex-China wire rod have been heard at $830-870/mt FOB, moving sideways on average compared to the previous week amid prevailing cautious sentiments.
“The expected production restrictions have bolstered local wire rod prices in China, providing support for ex-China wire rod offer prices, though demand in the export market has remained sluggish due to the rainy weather and uncertainty brought by Covid-19 pandemic,” an international trader said.
Demand for wire rod in Southeast Asia has slackened due to the rainy weather and the increasing Covid-19 cases. “Demand is bad. Covid is fairly rampant in most Southeast Asian markets,” a trader said. The tradable level in the Philippines is hardly above $730/mt CFR, while offers are at $745-760/mt CFR.
As of Thursday, July 22, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,648/mt ($873.6/mt), increasing by RMB 102/mt ($15.8/mt) or 1.84 percent since July 15, while increasing by 1.09 percent compared to the previous trading day (July 21).
$1 = RMB 6.4651