SteelOrbis has been informed that Chinese export offer prices for wire rod have moved sideways, now at $480-490/mt FOB during the week ending September 11. Moreover, Malaysian mill has been heard to cut production due to no orders received.
Sentiments have seen improvement in the local wire rod market in China this week amid higher iron ore prices and boost from macro policy. Rebar futures at the Shanghai Future Exchange have risen by RMB 94/mt ($13.3/mt) since Friday, reaching RMB 3,481/mt ($491/mt) on Wednesday, September 11. Meanwhile, 62 percent Fe content Australian iron ore prices have risen from $88.21/mt CFR last Friday to $92.6/mt CFR on September 11.
Nevertheless, traders have been still offering Malaysian-origin wire rod at $470/mt CFR to the Philippines, but no official offers from Alliance Steel have been heard in the market.
The improvement in sentiments in China’s local market will likely continue to bolster Chinese wire rod export prices in the near future, but the uptrend is unlikely to stay for long.