Prices for imported wire rod in Southeast Asia have fallen this week, following negative developments in the Chinese market and price drops seen in the billet segment.
A contract for ex-Indonesia BOF wire rod has been heard at $735/mt CFR Manila, which is $30-40/mt below the levels in previous deals to Southeast Asia reported a week ago.
Offer prices from Vietnam have been at $740/mt CFR. However, currently, many buyers in the Philippines have had very negative views, seeing sharp declines in the billet segment and more active offerings by traders from China. As a result, some importers have only been willing to buy at $720/mt CFR Manila.
Prices for ex-China wire rod from mills have been heard at $780-820/mt FOB, moving down by $20/mt on average compared to the previous week. “Traders in the Chinese market have been bearish as regards the future market prospects, resulting in fierce competition among them in the export market,” an international trader said.
The Chinese central government has moved to control coal and coke prices, exerting a negative impact on ferrous metal futures prices. Some Chinese steelmakers have halted production and implemented maintenance works amid the shrinking of profitability.
As of Thursday, November 4, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,226/mt ($660/mt), decreasing by RMB 486/mt ($76/mt) or 10.3 percent since October 28.