Prices for imported wire rod in Southeast Asia have shot up this week, following some rises in China and more confidence in the uptrend, since billet and raw material prices have also posted rapid increases.
Offer prices of ex-Malaysia and ex-Indonesia wire rod have been heard at $580-585/mt CFR the Philippines, up by $25-30/mt over the past week. But while a week ago some deals were done in the range of $550-560/mt CFR, this week buyers have been more cautious. A few sources said that there would be demand at around $570/mt CFR Manila.
In Thailand, ex-ASEAN wire rod offers have reached $585/mt CFR, “but no taker as prices are rising fast. Some buyers believe prices rose because of the weak US dollar,” a local source from Bangkok said. In addition, local prices for wire rod in Thailand have all been above $600/mt recently. The highest level is THB 22,000/mt or $631/mt ex-works from EAF-based mills. Closer to $600/mt ex-works, only induction mills can offer. As a result, some demand for imported wire rod could be seen in the near future, if someone needs to restock for January.
Offers for ex-China wire rod have been heard at $560-565/mt FOB at the lowest this week, and the reference price has reached $560-570/mt FOB, increasing from $530-550/mt FOB last week and $540-560/mt FOB early this week. A number of mills have been asking even higher prices at $570/mt FOB and above. This means that on CFR Manila basis, ex-China material is priced at $590/mt CFR at the lowest at the moment, though even early this week traders were considering below $580/mt CFR. “Chinese wire rods have become costly again, so those who buy SAE1006 are looking for alternatives,” a source in Manila said.
“The increases in iron ore prices have bolstered Chinese wire rod prices, while local demand is limited in the traditional offseason. China’s stimulus policy has exerted a positive impact on the wire rod market,” an international trader said.