Average offer prices for ex-China wire rod have moved sideways over the past week amid the fluctuating trend in rebar futures, though outlook is rather negative.
Offers for ex-China wire rod from second-tier mills have been heard at $475-490/mt FOB, moving sideways on average compared to that recorded on November 21.
During the given week, wire rod prices in the Chinese domestic market have fluctuated within a limited range amid small changes in rebar futures prices. Coking coal and coke prices in the Chinese domestic market have started to edge down, which will weaken the support for wire rod prices from the cost side. Demand for wire rod from downstream users has slowed down, exerting a negative impact on prices. Since the weather is getting colder and colder, buyers have been cautious in concluding purchases of wire rod. It is thought that wire rod prices in the Chinese domestic market will likely fluctuate within a limited range with some negative bias in the coming week.
Offer prices of Indonesian wire rod have been stable at $490/mt, FOB, while offer prices of ex-Malaysia wire rod have been heard at $500-510/mt FOB.
Import wire rod prices in Southeast Asia have also been almost stable, at $485-490/mt CFR, with negotiations heard in Thailand.
As of November 28, rebar futures at Shanghai Futures Exchange are standing at RMB 3,312/mt ($461/mt), decreasing by RMB 20/mt ($2.6/mt) or 0.6 percent since November 21, while up 0.42 percent compared to the previous trading day, November 27.
$1 = RMB 7.1894
