Most ASEAN region-based wire rod exporters have continued to insist on the higher prices announced last week, but buyers have been cautious. Average offer prices for ex-China wire rod have moved sideways over the past week, though declines in futures and spot prices in the local market have been putting pressure on sentiments.
The reference import prices of wire rod have been at $575-590/mt CFR Manila, with the lower end of the range increasing by $5/mt over the past week, mainly due to the absence of offers at the levels desired last week by customers, i.e., $570/mt CFR. A deal to the Philippines at around $580/mt CFR has been heard this week. "Some buyers have waited too long for an immediate cargo, so they have had to settle now for what is available," a Manila-based source said. Though buyers in Manila have been willing to conclude purchases, the weak performance in the Chinese wire rod market made them cautious.
Offer prices from Vietnam’s Hoa Phat CB240-T wire rod have been heard at $610-620/mt FOB amid the slack demand in East Asia, down $15/mt week on week.
Offers for ex-China wire rod have been heard at $600-630/mt FOB, moving sideways on average compared to August 11.
“Extremely high temperatures have hit China, resulting in power shortages, while some wire rod producers’ outputs have increased slightly due to their improved profitability. Though market players expect a better performance in September, uncertainty still exists,” an international trader said.
As of August 19, rebar futures at the Shanghai Future Exchange are standing at RMB 3,929/mt ($577/mt), decreasing by RMB 221/mt ($32.5/mt) or 5.3 percent since August 12.