Average offer prices for ex-China wire rod have moved sideways over the past week, but at the same time, the sentiments have remained weak and the market is waiting for more drivers. Market sources believe that weak demand in China may lead to further decline in some time.
Offers for ex-China wire rod from second-tier mills have been heard at $450-470/mt FOB, remaining stable on average compared to that recorded on June 12, while reference deal prices have been heard at $445-460/mt FOB, also moving sideways compared to June 12.
During the given week, wire rod prices in the Chinese domestic market have fluctuated within a limited range amid the slack demand from downstream users. The high temperature in summer and the plum rainy season in the lower and middle reaches of Yangtze River negatively affected activities at construction sites, exerting a negative impact on the wire rod market. The plum rainy season will be quite long this year, likely lasting until July 13, which will continue to slacken the demand for wire rod. It is expected that wire rod prices in the Chinese domestic market will soften in the coming week.
Offer prices of Indonesia Dexin wire rod for the Asian market have been at $490/mt FOB for September shipment, down by $5/mt over the week. But offers to Europe have remained at $495/mt FOB.
Offer prices of ex-Malaysia wire rod have been heard at $480/mt FOB, edging up by $5/mt on average compared to June 12, while prices of ex-Vietnam wire rod have been heard at $535/mt FOB.
In Southeast Asia, mainstream tradable prices of SAE1008 6.5 mm wire rod have been heard at $465-470/mt CFR, edging up by $2.5/mt over the week.
As of June 19, rebar futures at Shanghai Futures Exchange stand at RMB 2,986/mt ($412/mt), increasing by RMB 18/mt ($2.5/mt) or 0.6 percent since June 12, while up 0.13 percent compared to the previous trading day, June 18.
$1 = RMB 7.1729