Average offer prices for ex-China wire rod have fluctuated within a limited range over the past week amid the slack demand from downstream users. Even though futures have posted some rise recently, overall sentiments in the Asian market have been negative with traders starting to offer lower level in short position.
Offers for ex-China wire rod from small mills have been heard at $520-540/mt FOB, edging down by $5/mt compared to July 6.
“During the given week, wire rod prices in the Chinese domestic market have fluctuated within a limited range amid the prevailing cautious sentiments among market players, while the high temperature negatively affected construction activities on construction sites, which exerted a negative impact on the demand for wire rod,” an international trader said.
Buyers in South America and Middle East have been unwilling to conclude purchases for wire rod.
Offer prices of ex-Indonesia wire rod have been heard at $525-530/mt FOB, stable over the week, while form Malaysia prices were starting from $535/mt FOB still.
“ASEAN prices are too high, all low levels that we see in the market are from China,” a Manila-based trader said. Offer prices of ex-China wire rod have been heard at $540-550/mt CFR, Southeast Asia and some short position offers have been heard even at $530-535/mt CFR. Last week the reference price was $545-550/mt CFR Manila.
As of Thursday, July 13, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,727/mt ($521/mt), decreasing by RMB 31/mt ($4.3/mt) or down 0.8 percent since July 6, while increasing by 0.92 percent compared to the previous trading day (July 12).
$1 = RMB 7.1527
