Stronger futures prices in China and rising billet prices will boost import wire rod prices in Asia soon, market sources believe. Prices to Southeast Asia and China have dropped over the past two weeks as sellers have been trying to attract buyers.
Offers for BF wire rod from the ASEAN region have been heard at $730-735/mt CFR in the Philippines over the past week, but on Friday some mills have withdrawn offers or increased them to $750/mt CFR minimum, reacting to the improved sentiment in China. Offers for IF wire rod have been reported at $720/mt CFR. One sale for 10,000 mt of IF wire rod has been rumored at $715-720/mt CFR, but there has been no confirmation by the time of publication.
Offers for ex-China wire rod have still been heard at $820-860/mt FOB, moving sideways on average compared to the previous week amid the rising trend seen in rebar futures prices.
“Major wire rod producers bolstered their offer prices amid production restrictions and power restrictions, billet offer prices in the ASEAN region have started to see rises, while rare transaction activities have been heard there amid control measures for the Covid-19 pandemic,” an international trader said.
Rebar futures at Shanghai Futures Exchange have added 2.4 percent or RMB 125/mt ($19/mt) today, closing at RMB 5,408/mt ($837/mt).