Ex-ASEAN wire rod suppliers have hiked prices further in Southeast Asia this week, with the increases bigger than before. Since mills are not under very strong pressure from inventories at the moment, they are more bullish. At the same time, ex-China wire rods have also been actively offered in the market.
Offer prices of ex-Malaysia and ex-Indonesia wire rod have been reported at $550-570/mt CFR Manila, up by $10-30/mt over the past week. At the same time, ex-China wire rod is available at $550-560/mt CFR from traders. Meanwhile, demand in Southeast Asia has remained very weak and buyers have not been eager to conclude purchases, adding that they may pay $540/mt CFR if someone needs material, but hardly above. Last week, most bids were at $530-535/mt CFR.
ASEAN region-based mills have been not very active in offering to distant markets like Europe this week as they previously managed to sell good volumes to this destination and now the competition has increased with more Algerian offers to Europe. The latest offers for ex-ASEAN wire rod were at $600-615/mt CFR, as reported last week.
Offers for ex-China wire rod have been heard at $530-550/mt FOB, moving sideways compared to November 17. “The spreading Covid-19 pandemic in China has negatively affected the wire rod market, while the expected production restrictions in winter may provide support for the market, though cautious sentiments have started to prevail among market players,” an international trader said.
As of Thursday, November 24, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,681/mt ($517/mt), decreasing by RMB 45/mt ($6.3/mt) or down 1.2 percent since November 17.
