Prices for imported wire rod in Southeast Asia have moved down this week, following a deal for South Korean origin material signed at an unexpectedly low level early this week. At the same time, offer prices for ex-China wire rod have moved up following the previous stable trend, amid rising local prices and raw material prices. Chinese suppliers remain almost out of the export market now.
A deal for ex-South Korea wire rod has been heard at $430/mt CFR to the Philippines, while last week there were no offers below $440-445/mt CFR. At the same time, later this week, ex-Malaysia and ex-Indonesia wire rods were traded at around $435-440/m CFR Vietnam. The latest offers from ex-India wire rod have been heard at $450/mt CFR Thailand, with some very small tonnage sold late last week or this week, sources have said, but this level does not reflect the real market level anymore. At the moment, most bid prices from Southeast Asia are coming at around $430/mt CFR.
SteelOrbis has been informed that Chinese mills’ export prices for wire rod have moved up by $10/mt over the past week to $460-470/mt FOB, following a stable trend in the previous week. “Ex-China wire rod has not been competitive in the export market amid the rising trend in the local market,” said a trader.
As of Thursday, June 4, rebar futures at the Shanghai Future Exchange are standing at RMB 3,606/mt ($508/mt) ex-warehouse, increasing by RMB 108/mt ($15.2/mt) or 3.1 percent since May 28.
Ferrous metal futures prices have moved on an overall uptrend, exerting a positive impact on wire rod prices in the local market. Meanwhile, iron ore prices have been fluctuating at high levels, bolstering wire rod prices. Demand for wire rod has been good, though there is concern about the slackening demand in June due to hot weather.
$1 = RMB 7.1012