Import prices for wire rod have indicated rises in Southeast Asia over the past week. Chinese mills have kept prices stable or increased them slightly as sentiments in the local market have improved.
Offers for ex-China wire rod have been heard at $620-640/mt FOB, moving up by $5/mt compared to last week. According to some sources, a Malaysian mill has announced the same FOB levels for customers in Southeast Asia.
Wire rod prices from private steelmakers in northern China have been heard at $630-640/mt CFR Philippines, up from last week’s tradable level of $620-625/mt CFR. “I would say that to buy at $630/mt CFR would be very good in the current market,” a source said, adding that the uptrend in the billet segment has inevitably been reflected in wire rod prices.
“During the given week, wire rod prices in the Chinese domestic market have edged up slightly amid improved transaction activities. Downstream users have gradually resumed construction activities, exerting a positive impact on the wire rod market. At the same time, stimulus policies are expected to be issued in March when the National People's Congress and the Chinese Political Consultative Conference (NPC&CPPCC) are held, bolstering market players’ sentiments,” an international trader said.
As of February 17, rebar futures at the Shanghai Future Exchange are standing at RMB 4,167/mt ($607/mt), moving up by RMB 93/mt ($13.6/mt) or 2.3 percent since February 10.
$1 = RMB 6.8659
