Average offer prices for ex-China wire rod have moved up compared to the previous week due to the strict inspections reviewing capacity elimination and production cuts in China, and also due to the rising trend of ferrous metal futures prices in China. Southeast Asian wire rod exporters have started to be more bullish as well, but weak support from the demand side in the Philippines and Thailand has prevented prices from recording a visible increase.
Offers for ex-China wire rod have been heard at $830-870/mt FOB, moving up by $15/mt on average compared to the previous week amid the prevailing bullish sentiments. “Production restrictions have exerted a positive impact on market players’ sentiments, resulting in lower outputs of wire rod and the increasing trend of its prices, while demand has remained slack in the traditional offseason, which may negatively affect prices,” an international trader said.
Ex-Vietnam IF wire rod prıces have remained the most competitive in Southeast Asia - at $735-740/mt CFR the Philippines, but the current level is $5-10/mt CFR above last week’s levels. Other suppliers, from Indonesia and Malaysia for instance, have still been heard at $760/mt CFR the Philippines, while transaction activities have been weak, and so buyers wanted to buy supplies at lower prices.
As of Friday, July 16, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,559/mt ($859/mt), increasing by RMB 131/mt ($20/mt) or 2.4 percent since July 9.