Average offer prices for ex-China wire rod have remained stable over the past week even though some rises have happened in local spot and futures markets. Some ASEAN mills also increased offers, but in general the workable prices for wire rod in Asia have not changed much, being impacted by weak demand.
Offers for ex-China wire rod have been heard at $460-480/mt FOB, remaining stable compared to that recorded on October 23. The tradable prices have been heard at $455-470/mt FOB. But some sellers have been still ready to give lower non-VAT offers at $445-450/mt FOB.
During the given period, rebar futures prices at Shanghai Futures Exchange have moved up, positively affecting wire rod prices in the Chinese domestic market. Coke prices are likely to implement the third round of hike, which will bolster wire rod prices to a certain degree from cost side. On October 30, President of China Xi Jinping held a meeting with US president Trump at Busan, which will exert a positive impact on market sentiments. The wire rod production increased in the given week, which will increase the pressure on supply side. It is expected 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 increased to $473/mt FOB for January shipment, up from 4465/mt FOB a week ago. Offer prices of ex-Malaysia SAE1006 wire rod have been heard at $470/mt FOB.
In Southeast Asia, mainstream offer prices of SAE1008 6.5 mm wire rod have been heard at $475-480/mt CFR, but some traders have been still ready to give lower levels - $465-475/mt CFR, according to some sources. But this has not been reflected in deals as most buyers have been still insisting on $460-465/mt CFR as the highest.
As of October 30, rebar futures at Shanghai Futures Exchange are standing at RMB 3,106/mt ($437.5/mt), increasing by RMB 35/mt ($4.9/mt) or 1.1 percent since October 23, while down 0.38 percent compared to the previous trading day, October 29.
$1 = RMB 7.0864
