Wire rod import purchases have been inactive in the Southeast Asian market over the past week and buyers have been asking for discounts, but most major sellers have been keeping their offer stable.
Ex-Indonesia wire rod offer prices have been heard at $725/mt CFR to the Philippines, while the workable price level is still at $720/mt CFR. Sources said that overall demand is weak and that buyers have been resisting a further uptrend of prices. Some bids have been heard at lower levels - at $710-715/mt CFR.
Offers for ex-China wire rod have been heard at $730-750/mt FOB, remaining stable compared to the previous week, while buyers will have to bear risks from the awaited tax rebate cut. If sellers bear the risks, the offer prices are up to $850-860/mt FOB. “The expansion of production restrictions will provide solid support for ex-China wire rod offer prices,” an international trader said. In addition to the restrictions in Tangshan, the authorities in Handan have called for reductions in emissions as well.
As of Thursday, April 22, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,208/mt ($801/mt), increasing by RMB 101/mt ($15.5/mt) or 1.98 percent since April 15, while increasing by 0.97 percent compared to the previous trading day (April 21).
$1 = RMB 6.5297