Prices for import wire rod in the Asian market have surged over the past week, following sharply rising offers from the main Southeast Asian exporters. Average offer prices for ex-China wire rod have moved sideways compared to the previous week amid the strong local market, but most Chinese sellers are still inactive, waiting for the announcement of the details of the anticipated export tax rebate cuts.
Offer prices for wire rod from Indonesia have been increased to $720-725/mt CFR to the Philippines, which is $25-30/mt above the level voiced last week. Some suppliers from Southeast Asia have even started to offer at $730/mt CFR. Though overall trading activity has lacked strength, some small volumes have been sold at much higher price levels as customers have not had many options. According to sources, ex-ASEAN wire rod has been sold at $710-715/mt CFR to the Philippines this week and the tradable level to Thailand has gone up to $715-720/mt CFR. This means that the reference deal prices in Southeast Asia have added $35-40/mt on average compared to last week.
Offers for ex-China wire rod have been heard at $730-750/mt FOB, moving sideways compared to last week, while buyers have been required to bear the potential risks of any tax rebate cut. Both sellers and buyers are waiting for the announcement of the export tax rebate policy. “The high level of ex-China wire rod offer prices has bolstered wire rod offer prices from other regions, while better demand in the local market has provided solid support for China’s export offer prices,” an international trader said.
As of Thursday, April 8, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,115/mt ($781/mt), increasing by RMB 112/mt ($17.1/mt) or 2.24 percent since April 1, while decreasing by 0.23 percent compared to the previous trading day (April 7).
$1 = RMB 6.5463