Average offer prices for ex-China wire rod have indicated further rises over the past week, supported by gains in futures prices and fresh monetary stimulus policies by the government.
Offers for ex-China wire rod from small mills and traders in Tangshan have been heard at $530-560/mt FOB, moving up by $10/mt compared to June 8.
“During the given week, wire rod prices in the Chinese domestic market have indicated a rebounding trend, while demand has been slack, though the People’s Bank of China decreasing the repo rate by 10 basis points to 1.9 percent has exerted a positive impact on market sentiments, and the loan prime rate (LPR) is expected to decrease by the same margin, which will positively affect the wire rod market,” an international trader said.
The latest sale for ex-Indonesia wire rod has been reported at around $550/mt CFR in Southeast Asia, while last weekend ex-China wire rod was sold at $545/mt CFR Singapore. The previous tradable levels in Southeast Asia were at around $535/mt CFR.
The last sale of ex-Indonesia wire rod was at $530/mt FOB, while new offers have been heard at $535-540/mt FOB. Official offers for ex-Malaysia wire rod are higher, not below $550/mt FOB.
As of Thursday, June 15, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,760/mt ($526/mt), increasing by RMB 106/mt ($14.8/mt) or up 2.9 percent since June 8, while rising by 0.59 percent compared to the previous trading day (June 14).
$1 = RMB 7.1489