Import wire rod prices in Southeast Asia have increased slightly, supported by rising scrap prices and a better outlook. However, the new level of prices has not been fixed in deals as market sources are not confident in the trend. Average offer prices for ex-China wire rod continued their downtrend over the past week amid slack demand.
Ex-Malaysia and ex-Vietnam wire rod have been offered to the Philippines at $680-690/mt and $690-700/mt CFR Manila, while last week most offers from the ASEAN region were at $670-680/mt CFR. Moreover, the cheap offers from Chinese traders available at $660-670/mt CFR last week have disappeared. “I believe you can get $680/mt CFR at the lowest now. Prices increased, yes, but $700/mt CFR is overpriced,” a trader said. This means that the tradable level for imported wire rod has increased to $680/mt CFR, up by $10-20/mt over the past week. Market players have mostly held a wait-and-see stance towards the prospects for the future market as, even though scrap and billet prices have posted an increase late this week, there has not been enough demand to accept rising finished steel prices.
Offers for ex-China wire rod from mills have been heard at $650-710/mt FOB, moving down by $25/mt on average compared to last week.
“Following the easing of the Covid-19 pandemic, construction sites in the local market in China have gradually resumed construction activities, while traders have chosen to reduce ex-China wire rod offer prices amid the slack demand in the export market,” an international trader said.
As of Thursday, June 30, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,378/mt ($652.5/mt), increasing by RMB 143/mt ($21.3/mt) or 3.4 percent since June 23.