Average offer prices for ex-China wire rod have edged down compared to the previous week amid weak demand and the lack of optimism for domestic consumption for the near future. Lower prices for import wire rod have been seen in Southeast Asia as well.
Offers for ex-China wire rod have been heard at $850-890/mt FOB, moving down by $15/mt on average compared to the previous week amid the prevailing bearish sentiments.
“Major exporters have lowered their offer prices by $30-40/mt to $850/mt FOB, though some steelmakers have held their prices at $880-890/mt FOB,” an international trader said, adding that only buyers from South Korea were concluding small-volume deals. According to market sources, export offers from China may continue to move down later in June amid the approaching rainy season in China, which will reduce demand for wire rod in the local market.
However, at the moment, some rebound has been seen in the futures market, which has supported local spot prices for construction steel products for now. As of Thursday, June 3, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,148/mt ($907/mt), increasing by RMB 331/mt ($52/mt) or 6.9 percent since May 27, while rising by 1.72 percent compared to the previous trading day (June 2).
Offer prices from Vietnam to the Philippines have been reported at $770/mt CFR Manila, down about $10/mt from last week. Also, traders have said that there have also been prices at $760/mt CFR available in Southeast Asia, but customers have been reluctant to purchase, waiting for bigger discounts.
$1 = RMB 6.3811