Average offer prices for ex-China wire rod have moved down over the past week due to the prevailing cautious sentiments among market players and sliding local and futures prices. At the same time, ASEAN region-based mills have also cut export offers, trying to push volumes.
Offers for ex-China wire rod from the second-tier mills have been heard at $520-540/mt FOB, moving down by $15/mt compared to August 3. “During the given week, typhoon Khanun brought floods and heavy rainfalls to northeastern China, exerting a negative impact on construction activities and weakening the demand for wire rod. The inventory of wire rod decreased against the backdrop of declining supply, which may bolster prices to some extent,” a trader said.
Offer prices from traders for Asian origin wire rods have been heard at $530-540/mt CFR the Philippines, while buyers have been unwilling to buy in the traditional offseason. The previous deal was done at $540/mt CFR Manila, but “this week the tradable level is hardly even $530/mt CFR,” a source said.
ASEAN mills have also cut their official offers mainly by $10/mt to $525/mt FOB. But some sources said that $520/mt FOB is also possible currently. “Some of them [ASEAN suppliers] are on business trips around Asia looking for sales,” an Asian source said.
As of Thursday, August 10, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,671/mt ($513/mt), declining by RMB 57/mt ($8/mt) or down 1.5 percent since August 3, while decreasing by 0.51 percent compared to the previous trading day (August 9).
$1 = RMB 7.1576