ASEAN region-based wire rod exporters have been insisting on higher prices in the regional market in Southeast Asia and the tradable level as a result has also improved slightly. Additional support has been coming from the rises in the Chinese market seen early this week.
The reference deal price level in Southeast Asia has increased by $5/mt over the past week to $575-580/mt CFR Manila. Ex-Indonesia offers have been reported at $580-585/mt CFR, while ex-Malaysia offers have been at $590/mt CFR. However, the offers from mills are almost at the same levels as last week and, while last week some discounts were possible, this week the workable levels have been higher.
However, most ASEAN suppliers have not been very aggressive as they have seen futures prices tumble in China on Thursday, and, even after some rebound on Friday sentiments have been cautious. At the same time, overall demand in the Philippines and Thailand has been limited, which also makes the sustainability of the uptrend doubtful.
Offer prices of Vietnam’s Hoa Phat SAE 1006 wire rod have been heard at $630/mt CFR.
Offers for ex-China wire rod have been heard at $600-630/mt FOB, moving sideways on average compared to July 28.
“Following the rebounding trend, wire rod prices have moved down again as major wire rod producers resumed production and increased supplies to the market, while the demand for wire rod has not improved significantly,” an international trader said.
As of Thursday, August 4, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,980/mt ($509/mt), decreasing by RMB 78/mt ($11.5/mt) or 1.9 percent since July 28.