Prices for ex-China wire rod have edged up slightly over the past week, supported by hopes of better demand in the local market in the fourth quarter. Traders’ offers have also increased a little, though demand has remained limited in the import market in Southeast Asia.
Offers for ex-China wire rod from second-tier mills have been heard at $520-530/mt FOB, edging up by $10/mt compared to October 19. At the same time, SAE1006 wire rod offers from large producers have been at $535-545/mt FOB at the lowest. “Wire rod prices have moved on an uptrend amid the rises in futures prices as the central government will issue additional bonds worth RMB 1 trillion for 2023 in the October-December period,” a trader said. Though there is relatively limited scope for improvement in local wire rod demand in China, wire rod producers may implement more production restrictions in the near future, which will result in a healthier situation between supply and demand.
Offer prices of ex-Indonesia and ex-Malaysia wire rod have been heard at $520-530/mt FOB, moving sideways over the past week.
In the import wire rod market in Southeast Asia, traders’ offers for Chinese Q195 and Q235 wire rod to the Philippines were reported at $510-520/mt CFR early this week, versus $510/mt CFR last week, but by Thursday they are already not below $520/mt CFR. In Thailand, offers are up to $540/mt CFR.
As of Thursday, October 26, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,685/mt ($513/mt), increasing by RMB 41/mt ($2.4/mt) or up 1.1 percent since October 19, while rising by 0.57 percent compared to the previous trading day (October 25).
$1 = RMB 7.1784