Offer prices for ex-China wire rods have moved sideways in the past week amid the appreciation of the Chinese currency and even despite worsening sentiment in the domestic market. Offers from Southeast Asian sellers in the region have also been firm, following previous increases.
Offer prices of ex-Southeast Asia wire rod have been heard at $510/mt CFR Philippines, remaining stable compared to the previous week, while buyers in the Philippines have been willing to purchase at $500/mt CFR. The tradable value in the Asian market has remained at $500/mt CFR, but no new deals have been reported so far.
Meanwhile, offer prices of ex-South Korea wire rod have been heard at $520/mt CFR South America, competing with Chinese export prices.
Offers for ex-China wire rod have been heard at $515-530/mt FOB, moving sideways compared to last week, though a deal was heard at $515/mt FOB last week, to South America. “Though wire rod prices in the local market in China have edged down, producers gained sufficient orders in the export market and they have been willing to keep their offer prices stable amid the appreciation of the Chinese currency,” a trader commented.
As of Thursday, September 17, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,577/mt ($529/mt), decreasing by RMB 63/mt ($9.3/mt) or 1.73 percent since September 10, and down 0.28 percent from the previous trading day.
$1 = RMB 6.7675