Average offer prices for ex-China wire rod have moved up significantly compared to the previous week amid the increasing ferrous metal futures prices in China, rising iron ore prices and improved demand in the local market. Southeast Asian wire rod exporters are also bullish, making buyers more cautious.
Offers for ex-China wire rod have been heard at $680-700/mt FOB, moving up by $45/mt compared to the previous week. “The quick rises in rebar futures prices and the prevailing bullish sentiments have bolstered ex-China wire rod offer prices, while ex-ASEAN wire rod prices have also seen big rises. The market will stay bullish in the short term,” an international trader said.
Offers from Southeast Asia, Indonesia, Vietnam and Malaysia in particular, have been reported at $655-660/mt CFR to the Philippines. Some Chinese traders have been ready to deal at $670/mt CFR. But customers have not been active, seeing the market price level at about $640-645/mt CFR, This, however, is up by about $20/mt over the past week.
As of Thursday, February 25, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,686/mt ($726.5/mt), increasing by RMB 157/mt ($24/mt) or 3.47 percent since February 18, while rising by 2.4 percent compared to the previous trading day (February 24).
$1 = RMB 6.4522