Sentiments in the Asian wire rod market have been negative following the sharp drop in futures prices in China earlier this week. However, some market sources believe that prices are close to the bottom, at least for now.
Offers for ex-China wire rod have been heard at $450-470/mt FOB, moving sideways on average compared to May 22. Demand for wire rod from downstream users has not improved significantly, affecting prices in the Chinese domestic market. As the Dragon Boat Festival is approaching, some downstream users might build up certain stocks, bolstering wire rod prices to a certain degree. It is thought 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 been heard at $520/mt FOB, but discounts of $5-10/mt could be discussed, market sources said. Prices of ex-Malaysia wire rod have been heard at $475-480/mt FOB, down $7.5/mt on average compared to May 22.
In Southeast Asia, the tradable prices for SAE1006 import wire rod have dropped to $465-470/mt CFR, versus $480-490/mt CFR a week ago. Chinese Q195 material was offered at $470-475/mt CFR Manila.
As of May 29, rebar futures at Shanghai Futures Exchange are standing at RMB 2,978/mt ($414/mt), decreasing by RMB 83/mt ($11.5/mt) or 2.7 percent since May 22, while up 0.47 percent compared to the previous trading day, May 28.
$1 = RMB 7.1907
