Average offer prices for ex-China wire rod have remained stable over the past week due to the five-day Labor Day holiday, while the overall mood has improved slightly amid the resumption of construction activities and rises in futures prices. However, in Southeast Asia the outlook has remained negative and customers expect a further price decline soon, following the downtrend in the billet segment.
Wire rod import prices in Southeast Asia have still been heard at $810-820/mt CFR the Philippines. And market sources said that buyers are still waiting for a further decline and that prices may come to $800/mt CFR soon. At the same time, a private Chinese steelmaker gave an offer at $830/mt CFR the Philippines.
Offers for ex-China wire rod from the major mills are at $810-830/mt FOB, moving sideways on average compared to April 28.
“Construction activities were halted during the holiday, slackening the demand for wire rods. At the same time, transportation has still been negatively affected by the Covid-19 pandemic, resulting in rising inventory of wire rod. Market players are looking forward to the lifting of the lockdown in Shanghai, which will boost the demand for wire rod and bolster prices in the near future,” an international trader said.
As of Thursday, May 5, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,923/mt ($750/mt), rising by RMB 73/mt ($31.7/mt) or 1.5 percent since April 28.