Average offer prices for ex-China wire rod have moved sideways over the past week, as have ex-ASEAN quotations. In China, some more positive outlook has been seen but insufficient demand in the global market has prevented prices from recording any rises so far.
Offers for ex-China wire rod from second-tier mills have been heard at $465-480/mt FOB, remaining stable on average compared to February 27, while reference deal prices have been heard at $460-470/mt FOB and slightly lower is still available for non-VAT material.
During the given week, wire rod prices in the Chinese domestic market have fluctuated within a limited range amid the slightly increasing wire rod outputs and improved demand from downstream users. Market players mostly hold cautious sentiments as regards to the future prospects for the wire rod market as they have been waiting for specific stimulus policies following the Two Sessions meetings. Protectionism in the global market has exerted a negative impact on steel exports, which will exert pressure on the local market. It is thought that wire rod prices in the Chinese domestic market may rebound slightly in the coming week amid the traditional peak season, according to market sources.
Offer prices of ASEAN origin wire rods, from Indonesia and Malaysia in particular, have been at $475-480/mt FOB, for shipment in April.
The tradable level in the Philippines for import wire rod stands at $470/mt CFR Manila, stable over the week.
As of March 7, rebar futures at Shanghai Futures Exchange are standing at RMB 3,252/mt ($454/mt), decreasing by RMB 76/mt ($10.6/mt) or 2.3 percent since February 28, while down 0.67 percent compared to the previous trading day, March 6.
$1 = RMB 7.1705
