Average offer prices for ex-China wire rod have edged up compared to the previous week amid the increasing trend in rebar future prices in China. At the same time, the major wire rod exporters have also been actively increasing prices in the region and even some small deals at higher prices have been reported.
Offers for ex-Indonesia BF wire rod have increased to $740/mt CFR Manila this week, up from $710-720/mt CFR as the average price for BF wire rod last week. “Some small bookings have been done, but they are not indicative of the overall market sentiment,” a local trading source from the Philippines said.
An offer for IF wire rod from India has been reported at $735/mt CFR to Thailand, while the tradable level to Southeast Asia was at $715/mt CFR on average in the first half of January and the previous deal for IF material to the Philippines was at $705/mt CFR. A source said that a small lot of Indian wire rod has already been traded. “Low-carbon wire rods also are shooting up, following billets. Indonesia BF-route wire rod is offered at $770/mt CFR,” a trader from Thailand said.
Offers for ex-China wire rod have been heard at $740-770/mt FOB, rising by $10/mt on average compared to the previous week. “As the Winter Olympics are approaching, production restriction measures have continued, limiting rebar and wire rod supply, which will bolster prices,” an international trader said.
As of Thursday, January 20, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,713/mt ($741/mt), rising by RMB 80/mt ($12.6/mt) or 1.7 percent since January 13.