Sentiment has remained positive in the Southeast Asian import wire rod market. Chinese exporters are still not very active amid the pending tax rebate issue, while some regional suppliers from Southeast Asia have continued to voice higher prices.
Ex-Southeast Asia wire rod tradable prices have increased to $720/mt CFR to the Philippines, up by $5-10/mt compared to deals signed last week. Sources said that offers from most mills in the region are on the rise amid the lack of strong competition.
Vietnam's Formosa Ha Tinh announced its new wire rod price this week, increasing it by $84/mt compared to the previous month. Its price has reached $790/mt CFR for local customers in Vietnam.
Offers for ex-China wire rod have been heard at $730-750/mt FOB, moving sideways compared to the previous week, while these offer prices entail that buyers will bear the potential risks of the tax rebate cut. Offer prices have been much higher, up to $850/mt FOB, when sellers bear the risks of the tax rebate cut. It has been difficult to reach a deal. “The production restrictions and good demand in the peak season bolster market players’ sentiments as regards the future prospects for the wire rod market,” an international trader said.