Prices for imported wire rod in Asia have improved this week, following the unexpectedly low prices in deals in the previous week. Export prices from China have remained stable at high levels, but there were reports of import wire rod purchases in China before demand has started to slacken.
Offers of ex-South Korea wire rod have been heard at $445-450/mt CFR to the Philippines, against a deal at $430/mt CFR reported last week. Sources said that some additional volumes have been traded at this higher level. At the same time, offer prices of ex-India, ex-Brazil and ex-Saudi Arabia wire rod have been heard at above $450/mt CFR to Southeast Asia, though buyers have bid at around $435/mt CFR.
There has been information about an ex-Indonesia wire rod sale at $445-450/mt CFR to China, but this information has not been confirmed by the time of publication. The Indonesian producer has been offering at the same level to the Philippines.
SteelOrbis has been informed that Chinese mills’ export prices for wire rod have moved sideways over the past week at $460-470/mt FOB. “Ex-China wire rod offer prices have been high, and so it has been hard to reach deals,” a trader said.
Ferrous metal futures prices have indicated downward corrections, exerting a negative impact on wire rod prices in the local market. The rainy season in eastern and southern China has also negatively affected demand for wire rod in the local market. Iron ore prices are still at high levels, providing a certain degree of support for wire rod prices.
As of Thursday, June 11, rebar futures at the Shanghai Future Exchange are standing at RMB 3,596/mt ($508/mt), decreasing by RMB 10/mt ($1.4/mt) or 0.28 percent since June 4.
$1 = RMB 7.0603