Average offer prices for ex-China wire rod have edged down slightly over the past week amid weak transaction activities, while some ASEAN mills have also followed this trend.
Offers for ex-China wire rod from second-tier mills have been heard at $490-500/mt FOB, decreasing by $2.5/mt on average compared to October 17. Some negotiations for Q195 wire rod have been reported at $490/mt FOB with Asian customers.
On October 21, Jiangsu Province-based Shagang Group cut its offer prices for high-speed wire rod by RMB 100/mt ($14/mt) to RMB 3,770/mt ($531/mt) ex-works, exerting a negative impact on market sentiments. During the given week, there have been more wire rod supplies arriving in the local market, negatively affecting the market amid the increasing pressure from the supply side. Cautious sentiments have prevailed among market players and it is expected that wire rod prices in the Chinese domestic market will likely edge down in the coming week.
As a result, some small-volume deals for Chinese wire rod have been reported to Southeast Asia at $505/mt CFR, down from $520-525/mt CFR two weeks ago.
The wire rod price idea of the Indonesian mill has this week been at $505/mt FOB for January shipment. This is down from $520/mt FOB voiced by the seller two weeks ago. “The price has just returned to a more reasonable level. Some ASEAN producers may offer higher, but all these prices will not work out,” a trader said.
As of October 24, rebar futures at Shanghai Futures Exchange are standing at RMB 3,330/mt ($467/mt), increasing by RMB 30/mt ($4.2/mt) or 0.9 percent since October 17, while down 0.12 percent compared to the previous trading day, October 23.
$1 = RMB 7.1286