Average offer prices for ex-China wire rod have moved down further compared to the previous week amid the decreasing trends in rebar futures and local wire rod prices, coming closer to the tradable level in SE Asia. Regional wire rod sellers have kept prices stable this week, following last week’s decrease.
Offers for ex-China wire rod have been heard at $740-760/mt FOB, moving down by $20/mt on average compared to the previous week. “The demand for wire rod has improved to some extent amid decreasing prices, while some market players still hold a wait-and-see stance as it seems that coking coal and coke prices still have more space to decline,” an international trader said.
Ex-Malaysia wire rod offer prices have been heard at $715/mt CFR Manila, stable compared to last week, while some other major sellers have been offering at $720-730/mt CFR to the Philippines.
“Offers are low but the movement [in terms of volumes] is not good,” a trader said, adding that “Chinese wire rods are coming back at $770/mt CFR as China’s domestic market is depressed.”
Some SE Asian buyers expect prices to keep going down and their expectations are for $690-700/mt CFR for imported wire rod.
As of Thursday, November 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,169/mt ($653.4/mt), decreasing by RMB 274/mt ($33.8/mt) or 6.2 percent since November 11, while decreasing by 0.05 percent compared to the previous trading day (November 17).
$1 = RMB 6.3803