Average offer prices for ex-China wire rod have edged up slightly over the past week amid the support from rises seen in coke and iron ore prices. However, in general traders have been keeping prices at a low level after the drop last week, while slow demand in Asia and beyond has still been putting pressure on sentiments.
Offers for ex-China wire rod have been heard at $530-540/mt FOB, edging up by $5/mt compared to July 13. “During the given week, supply of wire rod has increased, while demand has slackened due to the high temperatures and heavy rains caused by typhoon Talim. On July 18, coking plants successfully raised their offer prices of coke, providing support for steel prices from the cost side,” a trader said.
However, in Southeast Asia’s import market, market sources have not seen any improvement. Offer prices of ex-China wire rod from large mills have been heard at $540-550/mt CFR Southeast Asia, though buyers in the region have been unwilling to conclude purchases in the traditional offseason and traders are still ready to provide offers at lower levels of around $530/mt CFR, stable from last week.
Ex-ASEAN wire rod prices have been at $520-530/mt FOB in general and demand from distant markets like Europe and Turkey has remained very poor. Moreover, tradable levels have fallen significantly, following billet and scrap price declines in these outlets, while ASEAN-based mills are not ready for sharp declines just yet.