Average offer prices for ex-China wire rod have seen decreases over the past week, but the better outlook and rising future prices for rebar have led to cautious optimism in the market. Moreover, after previous long-standing declines, prices for ex-ASEAN wire rods have stopped falling, SteelOrbis has learned from the market on July 29.
The tradable level for ex-ASEAN wire rod in the Philippines is at $570-575/mt CFR at the moment, versus $560-570/mt CFR last week. At the same time, offer prices of ex-Malaysia and ex-Indonesia wire rod from mills have been heard at $550/mt FOB, translating to $580-590/mt CFR Manila, while buyers have been unwilling to conclude purchases. The continuing weakness of billet prices in Southeast Asia has continued to put pressure on the wire rod market, exerting a negative impact on the market.
Offers for ex-China wire rod from mills have been heard at $600-630/mt FOB, moving down by $25/mt on average compared to July 21. “Demand for wire rod has been much slacker than in the same period in the past few years, while steelmakers’ production reductions have provided some support for prices. However, steelmakers are expected to increase production in the near future, which may negatively affect the wire rod market,” an international trader said.
As of Thursday, July 28, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,058/mt ($602/mt), increasing by RMB 227/mt ($34/mt) or 5.9 percent since July 21.