Major wire rod suppliers have started to increase prices in Southeast Asia, seeing a sharp increase in billet prices this week amid the rapid uptrend in the local market in China. Average offer prices for ex-China wire rod have remained stable compared to the previous week, but sentiment has definitely improved much.
Ex-Malaysia BOF wire rod has been offered to the Philippines at $740/mt CFR versus $730-735/mt CFR last week. Prices did not increase further because of the still weak demand in the country, market sources said. Some other regional producers from Indonesia and Vietnam, being focused on export billet sales at higher prices, have increased their offers to $760-790/mt CFR to Southeast Asia, as they believe finished steel prices will follow the uptrend in the billet segment.
The lowest price level has been reported for ex-India IF wire rod at $715-720/mt CFR Manila, almost unchanged over the past week, but no new deals have been done.
Offers for ex-China wire rod have been heard at $820-860/mt FOB, remaining stable on average compared to the previous week, while rebar futures prices have moved up significantly. “Major wire rod producers have continued to cut their production in September, bolstering their local prices, while the continuing Covid-19 pandemic in the ASEAN area has reduced demand for wire rod,” an international trader said.
As of Friday, September 10, rebar futures at the Shanghai Futures Exchange closed at RMB 5,640/mt ($873/mt), rising by RMB 232/mt ($36/mt) or 4.3 percent since September 3.