Average offer prices for ex-China wire rod have moved sideways compared to the previous week, though declining first in the past week and then indicating a rebounding trend later amid the improvement in overseas demand.
Offers for ex-China wire rod have been heard at $640-670/mt FOB or $655/mt FOB as a mid-point, moving sideways compared to the previous week. A number of deals have been reported at $650-660/mt FOB, especially to South America. “More Covid-19 cases in Hebei Province - a major steelmaking area in China – has negatively affected the supply and transportation of wire rod, bolstering prices, and at the same time buyers from South America have come back to the market, exerting a positive impact on ex-China wire rod offer prices,” an international trader said.
Offer prices of ex-Vietnam wire rod have been heard at $700/mt FOB.
The Covid-19 pandemic has become worse in several regions of China, which may negatively affect the demand for wire rod and result in rises in wire rod inventory levels. However, the limited supply of wire rod will likely provide support for ex-China wire rod offer prices in the coming week.
As of Thursday, January 7, rebar futures at the Shanghai Futures Exchange are standing at 4,455/mt ($690/mt), increasing by RMB 67/mt ($10.4/mt) or 1.5 percent since December 31, while increasing by 1.69 percent compared to the previous trading day.
$1 = RMB 6.4608