After last week’s attempts by suppliers to increase prices, offers for imported wire rods in Southeast Asia have moved down again. But most customers are cautious, believing prices will hit lower levels soon.
Offer prices of ex-ASEAN wire rod have been heard at $670-690/mt CFR, Philippines, gradually down from mainly $680-700/mt CFR last week, while demand has been slack. Buyers are waiting for prices to hit $650-660/mt CFR again.
Offers for ex-China wire rod from mills have been heard at $650-710/mt FOB, moving sideways on average compared to June 30.
“High temperatures and rainstorms in the summer have exerted a negative impact on the wire rod market, while the sporadic outbreaks of the Covid-19 pandemic in many regions of China also affected the market, which resulted in the prevailing cautious sentiments among market players,” an international trader said.
As of Thursday, July 7, rebar futures at the Shanghai Futures Exchange were standing at RMB 4,209/mt ($627/mt), decreasing by RMB 169/mt ($21.3/mt) or 3.86 percent since June 30, while rising by 0.69 percent compared to the previous trading day (July 6).