The import wire rod market in Southeast Asia has been silent in terms of trades due to the holidays and the bearish mood of buyers. Moreover, average offer prices for ex-China wire rod have edged down slightly over the past week.
Offer prices of ex-Malaysia and ex-Indonesia wire rod have been stable from last week at $850-860/mt CFR the Philippines. “They are offering at the same level, but the market is not good. I think lower prices will be achieved,” a local source said. The previous deal prices for ex-ASEAN billet were at $850/mt CFR, while for now the tradable level is assessed at $830-840/mt CFR at the highest.
The weaker sentiments are also connected with softening of the Chinese market. Offers for ex-China wire rod from mills have been heard at $840-850/mt FOB, edging down by $10/mt on average compared to April 7. But traders can provide $825-830/mt FOB to sign deals.
As of Thursday, April 14, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,004/mt ($787.5/mt), decreasing by RMB 66/mt ($10.4/mt) or 0.18 percent since April 7.
“According to the executive meeting of the State Council, China is preparing for a cut in the reserve ratio in the near future, which will exert a positive impact on market players’ sentiments and bolster wire rod prices in the near future,” an international trader said.