Offer prices for ex-China wire rod have moved up further in the past week amid the firm trend in the local market, rising iron ore prices and rebar futures prices. At the same time, Southeast Asian suppliers have also been bullish, despite the somewhat limited demand.
Offer prices of wire rod from Malaysian Alliance Steel have increased by $10/mt to $485/mt CFR Philippines. Some other Southeast Asian suppliers have been offering wire rod to the Philippines at $475-485/mt CFR, while last week a contract for Indian wire rod was reported at $460/mt CFR. Customers are not ready to accept further price increases and for now the workable level is still at $460-470/mt CFR Southeast Asia. This week, the lockdown in and around the Philippines’ capital Manila has been re-imposed due to the growing number of new Covid-19 infections in the country.
Offers for ex-China wire rod have been heard at $480-500/mt FOB, moving up by $10/mt compared to last week. “The rising trend seen in rebar futures prices at Shanghai Futures Exchange (SHFE) has bolstered ex-China wire rod offer prices, while the high levels of iron ore prices have also provided solid support to those prices,” a trader commented.
As of Thursday, August 6, rebar futures at the Shanghai Futures Exchange are standing at 3,858/mt ($555.9/mt), increasing by RMB 91/mt ($13.1/mt) or 2.4 percent since July 30.
$1 = RMB 6.9438