ASEAN region-based wire rod suppliers have continued to insist on the higher prices they announced last week. But this week the confidence in buying at the current levels has increased as the prices of raw materials from scrap to billet have posted an increase this week. Average offer prices for ex-China wire rod have remained stable over the past week.
Offer prices of ex-Malaysia wire rod have been heard at $550-560/mt CFR the Philippines, similar to Chinese traders’ offer prices, and in line with the levels heard last week. But while last week buyers from the Philippines were assessing the tradable level at $540/mt CFR, this week they said that the real market price is $550/mt CFR, as hardly any supplier will decide to sell lower in the near future.
Only some earlier-shipped ex-Russia wire rod has been available in Thailand at lower prices, but this level has not been included in the reference range since the material is already at port and not many buyers would like to buy ex-Russia material.
Offers for ex-China wire rod have been heard at $530-550/mt FOB, remaining stable compared to November 24.
“A round of cold weather has hit China, resulting in cautious sentiments among market players. However, China has issued policies to stimulate the real estate industry, which will positively affect the demand for wire rod. Scrap prices in the overseas market have started to increase, so market players are starting to expect a rising trend in wire rod prices,” an international trader said.
As of Thursday, December 1, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,752/mt ($517/mt), rising by RMB 71/mt ($10.0/mt) or up 1.9 percent since November 24.
