During the past week, import wire rod prices in Southeast Asian have increased sharply and the rise has been higher compared to the previous week. Sellers in the regional market have been following the trend in China, where prices have hit its record highs.
Offers for ex-China wire rod have been heard at $1,010-1,020/mt FOB, moving up by $145/mt on average compared to that recorded in the previous week amid the sharp rises in ferrous metal futures and local prices following the Labor Day holiday (May 1-5). “The tight supply pushed up billet prices, which bolstered ex-China wire rod offer prices, while the significant increases in ferrous metal futures prices and iron ore prices also exerted a positive impact on ex-China wire rod prices, though ferrous metal futures prices indicated downward corrections on May 13,” an international trader said.
Following big increases in ex-China wire rod prices, the lowest offers from regional suppliers have been heard from some sellers for ex-Indonesia and ex-Malaysia origin wire rod at $840-860/mt CFR, up by as much as $50/mt on average from last week. These levels have been too high for customers, which assess the tradable value at $800-810/mt CFR maximum for now.
But taking into account sharp rises in China, some wire rod exporters have been very bullish. An offer from Vietnam has been heard at $915/mt CFR Southeast Asia, while one of major Indonesian mills has been asking for $895/mt CFR.
As of Thursday, May 13, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,915/mt ($916/mt), increasing by RMB 250/mt ($38.7/mt) or 4.4 percent since May 6, while decreasing by 2.92 percent compared to the previous trading day (May 12).
$1 = RMB 6.4612