Major Vietnamese producer Formosa Ha Tinh has announced its wire rod prices for April shipment, keeping them stable compared to the previous month. Its wire rod quotations are at $500/mt CFR for grade 2 mesh quality mild wire rod and $518/mt CFR for mesh quality wire rod. In January, Formosa Ha Tinh had increased its wire rod prices by $8/mt.
It had been expected that the Vietnamese producer would lower prices for April as Chinese exporters have started to give very low offers last week and this week due to weak demand in the local market, caused by the coronavirus. This week, ex-China prices have come to $450-455/mt FOB. Offers in Vietnam have been at $460/mt CFR for Chinese origin wire rod and even a level as low as $450/mt CFR Vietnam has been heard from a trader. The stability of Formosa’s wire rod prices will give some confidence to the market as it means that the Vietnamese producer does not believe in the sustainability of the downtrend in the Chinese export market.