Wire rod offer prices from Chinese and ASEAN mills have moved sideways over the past week ahead of the Lunar New Year holiday (January 28-February 4), while traders have increased their prices after the rises in Chinese futures prices, withdrawing their short position offers.
Offers for ex-China wire rod from second-tier mills have been heard at $465-475/mt FOB, moving sideways on average compared to January 9, while reference deal prices have been heard at $460-465/mt FOB, also remaining stable compared to January 9.
During the given week, wire rod prices in the Chinese domestic market have fluctuated within a limited range, while transaction activities have been quiet. Cautious sentiments have prevailed among market players. Since the Chinese New Year holiday is approaching, demand from downstream users is unlikely to improve. However, some market players are expected to restock ahead of the long holiday amid the increasing trend of rebar futures prices. It is thought that wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Wire rod offer prices from Indonesia’s Dexin have been stable at $470/mt FOB, for shipment in March, while offer prices of ex-Malaysia wire rod have been heard at $490-495/mt FOB.
Last week, some low-priced deals for Chinese Q195 wire rod were disclosed at $460/mt CFR Manila, but since then offers have increased to $475-480/mt CFR as traders have not wanted to take risks.
As of January 16, rebar futures at Shanghai Futures Exchange are standing at RMB 3,327/mt ($463/mt), increasing by RMB 122/mt ($17/mt) since January 9, while up 1.22 percent compared to the previous trading day, January 15.
$1 = RMB 7.1881