Ex-China wire rod prices have increased over the past week, supported by stronger sentiments in the local market and rising futures prices, which have also pushed up prices in Southeast Asia.
Offers for ex-China wire rod from small mills in the north have increased by $10-15/mt over the past week to $530-545/mt FOB. While large mills are asking for $550/mt FOB at the lowest.
Import iron ore prices have indicated continuous rises, bolstering wire rod prices in the Chinese domestic market from the cost side, while rebar futures prices have also indicated an uptrend, exerting a positive impact on the wire rod market. “However, as it is getting cold in northern China, demand for wire rod may slacken, which will weaken the support for prices, though the anticipated production restrictions there may provide some support, and so wire rod prices in the Chinese domestic market may fluctuate within a limited range,” a trader said.
Offer prices of ex-Indonesia and ex-Malaysia wire rod have been heard at $530-540/mt FOB, up by $10/mt on the lower end over the past week. Most offers are for distant markets like Europe.
At the same time, ex-Indonesia wire rod offers from traders to the Philippines have been at $535/mt CFR, up from the lowest possible level of $520/mt CFR last week. “Chinese offers are not much lower [than ASEAN offers] currently, so $530-535/mt CFR is the tradable level now,” a Manila-based trader said. In Thailand, offers have added $5/mt to $545/mt CFR.
As of November 10, rebar futures at the Shanghai Future Exchange are standing at RMB 3,879/mt ($540/mt), increasing by RMB 74/mt ($10.3/mt) or 1.9 percent since November 3.
$1 = RMB 7.1771
