Average offer prices for ex-China wire rod have edged down over the past week amid the slack demand, but in general the market conditions have been rather stable with ASEAN mills holding offers after the decline last week.
Offers for ex-China wire rod from second-tier mills have been heard at $470-485/mt FOB, decreasing by $2.5/mt on average compared to that recorded on December 19. The reference deal prices have been heard at $470/mt FOB, also declining by $2.5/mt compared to December 19.
During the given week, wire rod prices in the Chinese domestic market fluctuated within a limited range. Steelmakers’ production of wire rod decreased slightly amid the slackened steel consumption by the end of the year as construction sites’ activities gradually slowed down. More steelmakers planned maintenances on wire rod production lines, which will exert a positive impact on the prices. It is thought that wire rod prices in the Chinese domestic market will move sideways in the coming week.
Offer prices of Indonesian Dexin wire rod have been stable at $475/mt, FOB, while offer prices of ex-Malaysia wire rod have remained at $500/mt FOB.
In the SE Asian wire rod market, the tradable level has been stable at $480-490/mt CFR in the Philippines and Thailand, while offers at the lower end have become rare.
As of December 26, rebar futures at Shanghai Futures Exchange are standing at RMB 3,305/mt ($456/mt), increasing by RMB 18/mt ($2.5/mt) or 0.55 percent since December 19, while up 0.03 percent compared to the previous trading day, December 25.
$1 = RMB 7.1897
