Average offer prices for ex-China wire rod have edged up slightly over the past week amid the slight rises in rebar futures prices in China and the support from iron ore prices. But the overall situation in the import market in Southeast Asia has been far from positive, as most regional suppliers have left offers stable and buyers have been actively asking for discounts.
Offer prices of ex-Malaysia and ex-Indonesia wire rod have been heard at $850-860/mt CFR the Philippines. Though ex-Indonesia wire rod was sold at $850/mt CFR last week, bids have fallen this week, according to sources. Some traders said that buyers have enough material for now and have voiced bids at $820/mt CFR Manila.
Offers for ex-China wire rod have been heard at $850-860/mt FOB, up by $10/mt on average compared to March 31.
“The control measures and the lockdown of Shanghai against Covid-19 have been much longer than market players’ expectations, while the policy in the real estate market will bolster the demand for wire rod,” an international trader said.
As of Thursday, April 7, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,070/mt ($796/mt), rising by RMB 9/mt ($1.4/mt) or 0.18 percent since March 31.