Following the wire rod price decline seen last week in Southeast Asia, prices have been almost stable and sellers have been waiting for some rebound in the near future. At the same time, average offer prices for ex-China wire rod have declined further by a slight margin and there has been a slight revival in export sales, though mainly to distant markets, not in Southeast Asia.
The latest bookings for ex-Malaysia and ex-Indonesia wire rods to Southeast Asia were done at $710/mt CFR late last week-early this week, stable compared to the tradable level reported last Friday. Moreover, by the end of this week suppliers have started to voice offers at up to $720/mt CFR.
Offers for ex-China wire rod have been heard at $730-760/mt FOB, edging down by $5/mt on average compared to the previous week.
“Steelmakers implemented production cuts, resulting in the declining trend of inventory levels, while market players are still cautious as regards the future prospects for the market. The rebounding ferrous metal futures prices and iron ore prices may bolster ex-China wire rod prices in the near future,” an international trader said.
A deal for a small volume of ex-China wire rod has been heard at $730/mt FOB, but the sales destination is said to be South America.