Average offer prices for ex-China wire rod have moved sideways compared to the previous week due to the slack demand in the local market and the fluctuating trend of rebar futures prices in China. Nevertheless, overall sentiment in the market has been bearish, taking into account trade being at a standstill in Southeast Asia and concerns over demand in China for the coming weeks.
Offers for ex-China wire rod have been heard at $820-860/mt FOB, moving sideways on average compared to the previous week amid the fluctuating trend seen in rebar futures prices.
“The strict control measures amid the worsening Covid-19 pandemic situation in some regions of China have negatively affected construction activities and have weakened the support for wire rod prices, the inventories of wire rod at steelmakers have started to increase, while wire rod prices are expected to see a rebounding trend when the pandemic situation improves,” an international trader said.
In Southeast Asia’s import market, no new deals have been heard over the past week as bids have been dropping further. It is unlikely that buyers in the Philippines will pay much above $700-710/mt CFR, sources have said. While offers have been at much higher levels - $730-770/mt CFR - the higher end of the range corresponds to ex-Indonesia offers, while the lower end reflects offers for ex-India IF wire rod.
There has been information in the market about negotiations for ex-ASEAN wire rod at $725-730/mt CFR in Thailand, but it has not been confirmed whether a deal has been done or not.