Prices for import wire rod have continued to increase rapidly in Southeast Asia as regional sellers are still bullish and bids have also improved. Chinese wire rod export prices have also continued to move upwards, though they are still much higher than the prices of their rivals.
The highest wire rod offer prices to Southeast Asia have been heard from Indonesia at $810/mt CFR, up by $30/mt compared to before the early May holiday. However, there are still some offers at below $800/mt CFR in the market. Customers in the Philippines have received offers from different origins at $790/mt CFR for BF wire rod. A deal for ex-Vietnam IF wire rod has been rumored at $765-770/mt CFR Manila, but it could not be confirmed by the time of publication. This price level seems attractive to customers in the Philippines, while the highest bids from Thailand are already at $780-790/mt CFR.
Offers for ex-China wire rod have been heard at $870-880/mt FOB, moving up by $15/mt on average compared to previous week amid the sharp rises following the Labor Day holiday (May 1-5). “Since the price gap between ex-China wire rod prices and other offer prices in the Asian market is big, it is difficult for Chinese sellers to close a deal, while ex-China wire rod offer prices may see further rises amid the expected declines in output in the future,” an international trader said.
As of Thursday, May 6, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,665/mt ($873/mt), increasing by RMB 213/mt ($37.7/mt) or 3.9 percent since April 29, while increasing by 4.56 percent compared to the previous trading day (April 30).
$1 = RMB 6.4895