Bearish sentiments have prevailed in Southeast Asia’s import wire rod market in the past week, with some traders still voicing low offers for Chinese non-VAT wire rod. In particular, some traders have been ready to provide $470-475/mt CFR for ex-China Q195 wire rod in the Philippines, while this level is much lower than official offers from secondary Chinese mills at $470/mt FOB at the lowest, and the same level is offered by the leading Indonesian mill on FOB basis.
“This [$470-475/mt CFR Manila] is definitely non-VAT wire rod. We have stopped working with it, but some traders are still doing so,” an Asian trader said, adding that, even if a trader is going short, this price is too low, even considering the negative mood in the market.
Most offers from traders for Chinese wire rod, including VAT, are standing at $485/mt CFR in Southeast Asia, a few buyers in Thailand have confirmed. “This was the last sale level last week, and buying will resume only next week,” a local source said.
Ex-Indonesia wire rod offers have been at $485-490/mt CFR in Southeast Asia depending on the country buying, for February shipment. Some sources believe that $480/mt CFR may be achievable in the near future if the Chinese market remains weak.