Some Southeast Asian suppliers have decided to cut wire rod offers, trying to attract demand. Prices for ex-China wire rod have remained stable compared to the previous week, supported by rebounding iron ore prices and higher futures prices.
Negotiations for ex-Vietnam IF SAE1006 wire rod have been held at $720-728/mt CFR this week in the Philippines, and, though there has been no confirmation of deals having been done, the sides may get together at near $720/mt CFR. Last week, the lowest bids were announced at $700/mt CFR, but improved sentiment and low offers available from early this week have made the market a bit livelier.
An Indonesian BF producer has been heard offering wire rod to China at $720/mt CFR, trying to accelerate sales. Offers from the largest mills from Southeast Asia were at $740-750/mt CFR a week ago.
Offers for ex-China wire rod have been heard at $820-860/mt FOB, remaining stable on average compared to the previous week amid the fluctuating trend seen in rebar futures prices. “The continuing production restrictions in China have bolstered wire rod prices, while the spreading Covid-19 pandemic in the overseas markets has slackened demand there, for instance, construction activities have slowed down in the ASEAN region, with some lockdowns being extended to the beginning of next month,” an international trader said.
As of August 27, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,222/mt ($805/mt), increasing by RMB 122/mt ($19/mt) or 2.4 percent since August 20.
$1 = RMB 6.4863