Average offer prices for ex-China wire rod have edged up slightly compared to the previous week due to the rising rebar futures prices. Most Southeast Asian suppliers have kept prices stable or nominally increased offers. But all this have not reflected the real market situation, sources have said, as demand in the region has been still very poor.
Offers for ex-China wire rod have been heard at $840-870/mt FOB, moving up by $5/mt on average compared to that recorded in the previous week amid the production restrictions.
“The restrictions on power usage due to the environmental protection cut the output of wire rod and bolstered its prices, though demand has remained sluggish. The rising billet prices provided certain support to ex-China wire rod prices, while the sufficient inventory and slack demand in the overseas market exerted a negative impact on its prices,” an international trader said.
As of Thursday, July 29, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,753/mt ($886/mt), increasing by RMB 105/mt ($16.2/mt) or 1.86 percent since July 22, while increasing by 1.95 percent compared to the previous trading day (July 28).
At the same time, most offers from Southeast Asia for wire rod have been heard at $740-760/mt CFR, the lower end of the range corresponds to IF wire rod and it is $5/mt below the level seen last week. No deals have been reported so far with the tradable level being assessed by market sources at $730/mt CFR as the highest. Supplier from Indonesia has been offering BF wire rod at the higher level - $780-785/mt CFR, but this was connected mainly with the producer’s focus on semis sales at the moment.
$1 = RMB 6.4942