Average offer prices for ex-China wire rod have edged up slightly over the past week amid increasing rebar futures prices, while the overall sentiments in the Asian wire rod market have improved ahead of the 14th National People’s Congress in China in early November.
Offers for ex-China wire rod from second-tier mills have been heard at $490-505/mt FOB, increasing by $2.5/mt on average compared to October 24.
The 12th Session of the Standing Committee of the 14th National People’s Congress (NPC) is due to be held during November 4-8, which has boosted market sentiments. However, most buyers have held a wait-and-see stance as regards the future prospects for the wire rod market because they are waiting for more stimulus policies to be issued following the meeting. It is thought that wire rod prices in the Chinese domestic market will likely move sideways in the coming week, market sources believe.
Offer prices of the Indonesian wire rod have been heard at $505/mt FOB, moving sideways compared to last week, while one deal at $500/mt FOB has been heard in the local market. Official offers for ex-Malaysia wire rod have been heard at $515/mt FOB.
In Southeast Asia’s import wire rod market, the tradable levels have increased to $520-525/mt CFR, though this is up from the lowest level seen at $505/mt CFR a week ago, and is in line with the levels seen in early October.
As of October 31, rebar futures at Shanghai Futures Exchange are standing at RMB 3,427/mt ($481/mt), increasing by RMB 97/mt ($13.6/mt) or 2.9 percent since October 24, while down 0.35 percent compared to the previous trading day, October 30.
$1 = RMB 7.125
