Prices for imported wire rod in Southeast Asia have been going down steadily as demand has been weak and traders have been trying to attract at least some customers. Offers from China have declined as well, though they have still been too high.
Reference import prices of wire rod in the ASEAN region have been at $560-570/mt CFR Manila, based on offers from traders for ex-ASEAN 6.5mm IF wire rod. Some mills have still been trying to hold offers at $590-600/mt CFR, but weak sentiment has been prevailing in the market. “You can find offers at $620/mt CFR, but they mean nothing,” a source said. Late last week, the tradable level for imported wire rod in Southeast Asia was at $595-600/mt CFR.
Offers for ex-China wire rod from mills have been heard at $630-650/mt FOB, moving down by $15/mt on average compared to July 14. “More steelmakers have implemented maintenance, bolstering wire rod prices to some extent, while the negative news in the real estate market and the high temperatures have affected the demand for wire rod. Bearish sentiments have prevailed among market players,” an international trader said, commenting on the situation in the Chinese market.
As of Thursday, July 21, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,831/mt ($567/mt), decreasing by RMB 2/mt ($0.3/mt) or 0.05 percent since July 14, while rising by 0.68 percent compared to the previous trading day (July 20).
$1 = RMB 6.762