Import wire rod prices have moved down in Southeast Asia following lower offers from India and Malaysia. Meanwhile, Chinese suppliers have mostly kept prices stable, and so their offers have become uncompetitive again.
SteelOrbis has been informed that offers for Malaysia-origin wire rod have been heard at $450/mt CFR Philippines, $10/mt lower than the previous week. The price decline for Malaysian wire rod has been followed by aggressive offers from India at $445-450/mt CFR.
Moreover, there have been quite low offers heard from the Middle East. In particular, a Saudi Arabian supplier has given an offer at $459/mt CFR Manila.
Chinese wire rod export offer prices have moved sideways compared to October 24 and are currently at $450-460/mt FOB, thereby staying uncompetitive.
During the given week, many regions in China have implemented production restriction measures to ensure good air quality, exerting a positive impact on local rebar prices and futures prices. Rebar futures at the Shanghai Future Exchange have increased by RMB 49/mt ($6.9/mt) or 1.5 percent since October 24.
However, players have been cautious as regards the future prospects for the wire rod market as demand is expected to slow down. Meanwhile, 62 percent Fe content Australian iron ore prices have declined from $87.1/mt CFR on October 24 to $84.2/mt CFR on October 31.
$1 = RMB 7.053
