Most regional wire rod suppliers have increased prices significantly in Southeast Asia. Average offer prices for ex-China wire rod have moved up slightly more compared to the previous week following the confirmation of the tax rebate cut, while they are still uncompetitive.
Ex-Indonesia wire rod offer prices have been heard at $780/mt CFR to the Philippines, up by $55/mt compared to the previous week. Buyers have not been ready for such a sharp increase, but, since there are not many options, higher import prices are expected to be accepted soon, at least partly.
Offers for ex-China wire rod have been heard at $850-870/mt FOB, moving up by $25/mt on average compared to yesterday, April 29. Compared with in the previous week, prices have added $120/mt as steelmakers need to bear the loss from the tax rebate cut issued on April 28. “Though there is slim hope China’s wire rod will be exported, the firm local wire rod prices will likely push up export prices further,” an international trader said.
As of Thursday, April 29, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,452/mt ($843/mt), increasing by RMB 244/mt ($37.7/mt) or 4.7 percent since April 22, while increasing by 1.94 percent compared to the previous trading day (April 28).
$1 = RMB 6.4715