Demand for import wire rod in Southeast Asia has remained limited over the past week and most regional suppliers have decided to leave their prices stable so far, waiting for some improvement in the situation in October when some lockdowns will be lifted. Average offer prices for ex-China wire rod have edged up compared to the previous week amid decreasing inventories due to the production restrictions in China.
Wire rod prices in the ASEAN region have been heard at $770-780/mt CFR the Philippines from large BOF-based producers, moving sideways, while demand has been poor due to the continuing impact of the Covid-19 pandemic. Ex-Vietnam IF wire rods are still available at $750-760/mt CFR Manila.
Offers for ex-China wire rod have been heard at $845-890/mt FOB, up $10/mt on average compared to the previous week, while rebar futures prices have edged up by 1.8 percent before the holidays.
“The dual controls of energy consumption and energy intensity have negatively affected wire rod output, bolstering prices, though demand has not seen a big improvement, the production restrictions will likely continue, which will provide solid support for wire rod prices in the near future,” an international trader said on September 30.
As of Thursday, September 30, rebar futures at the Shanghai Futures Exchange were standing at RMB 5,706/mt ($880/mt), increasing by RMB 101/mt ($9.9/mt) or 1.8 percent since September 23, while increasing by 1.15 percent compared to the previous trading day (September 29).