Ex-ASEAN wire rod suppliers have started to increase prices this week, seeing gains in the billet and raw material segments. Average offer prices for ex-China wire rod have remained stable over the past week, but some increases are expected in the next two weeks.
Following the Christmas-New Year holiday, in overseas market scrap and billet prices have gradually increased and so wire rod offer prices in the ASEAN market have reached $620-650/mt CFR, while last week the price levels were mainly at $610-620/mt CFR. Buyers did not react to the hike in offers and the tradable level has remained at around $605/mt CFR Manila and $610/mt CFR Bangkok.
Offers for ex-China wire rod have been heard at $590-610/mt FOB, remaining stable compared to December 29.
“Demand for wire rod from downstream users has been sluggish, while high iron ore prices have bolstered wire rod prices. The stock replenishment for winter has not been as good as market players had expected, at least so far,” an international trader said.
As of Thursday, January 5, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,017/mt ($583/mt), decreasing by RMB 31/mt ($4.5/mt) or 0.8 percent since December 29.