Prices for imported wire rod have remained stable in Asia this week, supported by the firm trend in China and the same bids from Southeast Asian customers.
Offer prices of ex-Indonesia wire rod have been heard at $505/mt CFR Manila, the same as last week, while there is sufficient supply in Manila and demand has been weak. The tradable value has remained at $500/mt CFR or just slightly below.
Average offer prices for ex-China wire rod have moved also sideways over the past week, at $515-525/mt FOB, while buyers’ bids have been at $510-515/mt FOB, with some small tonnages sold. “The appreciation of the Chinese currency still supports ex-China wire rod offer prices,” an international trader said.
In the Chinese domestic market, inventory of wire rod has decreased quickly, signaling good demand from downstream users. Meanwhile, high levels of billet prices have provided support for wire rod offer prices in China.
As of Thursday, October 29, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,668/mt ($545/mt), increasing by RMB 26/mt ($3.9/mt) or 0.71 percent since October 22, while rising by 0.69 percent compared to the previous trading day.
$1 = RMB 6.7296