Average offer prices for ex-China wire rod have edged up slightly over the past week mainly amid the appreciation of the Chinese currency. At the same time, import prices in Southeast Asia have remained almost stable so far.
Southeast Asian origin wire rod has been offered at $505/mt CFR and above in the Philippines. A deal for ex-Indonesia wire rod has been done at $500/mt CFR, in line with sources’ expectations. For now, bid prices have remained at $495-500/mt CFR in the Philippines.
Offers for ex-China wire rod have been heard at $515-525/mt FOB, moving up by $5/mt compared to the previous week. “The appreciation of the Chinese currency pushed up ex-China wire rod offer prices,” an international trader said. Buyers from South America bid at $510/mt FOB, up $5-10/mt compared to the previous week, while Chinese wire rod is still not competitive in Southeast Asia.
As of Thursday, October 22, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,642/mt ($547/mt), increasing by RMB 30/mt ($4.5/mt) or 0.83 percent since October 15, while rising by 0.28 percent compared to the previous trading day.
$1 = RMB 6.6556