Average offer prices for ex-China wire rod have moved sideways compared to the previous week, though local rebar prices have indicated sharp declines amid the big decreases in ferrous metal futures prices in China and the production curbs in Tangshan. Other Asian suppliers have also maintained high prices for wire rod, though most buyers in Southeast Asia have been reluctant to accept current prices.
Offers for ex-China wire rod have been heard at $700-720/mt FOB, moving sideways compared to the previous week. A deal has been heard at $720/mt FOB to South America, up by $5/mt over the past week, though none of the buyers in Asia considers this level to be workable. “Though local wire rod prices have seen big drops, exporters have been unwilling to cut their offer prices yet, while freight rates have indicated big rises. Accordingly, buyers have been reluctant to conclude purchases,” an international trader said.
Since demand in the local Chinese market is expected to improve in the coming period, market players think that Chinese wire rod prices may gain support and are unlikely to edge down.
Offers from Southeast Asian exporters, Indonesia and Vietnam in particular, have been reported at $680-690/mt CFR to the Philippines, remaining stable compared to the previous week. The tradable level for customers in the Philippines is still not above $670/mt CFR, according to sources. Ex-ASEAN wire rod was traded to Thailand at $675/mt CFR in late February and no new deals have been reported so far.
Vietnam's Formosa Ha Tinh has announced its new wire rod prices, increasing them by $16/mt compared to the previous month.
As of Thursday, March 11, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,687/mt ($721/mt), decreasing by RMB 162/mt or 3.3 percent since March 4, while rising by 1.96 percent compared to the previous trading day (March 10).
$1 = RMB 6.497