The uptrend has continued in Southeast Asia and wire rod prices have posted even sharper rises than in the previous week. Average offer prices for ex-China wire rod have edged up further due to the ongoing demand from overseas markets.
The tradable value for ex-Southeast Asia wire rod has reached $570-575/mt CFR in the Philippines this week, up by $20-25/mt compared to the highest bids last week. Though some buyers have not reacted to the recent increases in Southeast Asia and keep bidding at the level of previous deals - $540-545/mt CFR - these price levels do not reflect the current reality, sources have said.
Offers for ex-China wire rod have been heard at $550-580/mt FOB, moving up by $10/mt compared to the previous week even despite the weaker local market. “Buyers from South America have been seeking to purchase wire rod ahead of Christmas, though local wire rod prices have edged down in China amid slack demand in the cold weather,” an international trader said.
In the local market, cold and rainy weather has hit eastern China, where demand had been quite good previously, resulting in a slackening of demand there and exerting a negative impact on market players’ overall sentiments. At the same time, wire rod supplies have continued to circulate into southern China, negatively affecting the market. However, tight supply in eastern China will provide support for wire rod prices.
As of Thursday, December 3, rebar futures at the Shanghai Future Exchange are standing at RMB 3,866/mt ($586/mt), decreasing by RMB 18/mt ($2.7/mt) or 0.46 percent since November 26, while decreasing by 1.23 percent compared to the previous trading day.
$1 = RMB 6.5592