Average offer prices for ex-China wire rod have seen certain decreases over the past week amid slow demand and the softening of raw material prices, while mills based in the ASEAN region have also followed the trend, though the declines have been gradual.
Offers for ex-China wire rod have been heard at $550-580/mt FOB, edging down by $5/mt on average amid decreasing iron ore prices. Wire rod prices in the Chinese domestic market have continued to decrease, resulting in reduced profitability for steelmakers, while import iron ore prices have decreased, weakening the support for wire rod prices. Demand for wire rod has been slack, though “inventories have been at relatively low levels, still providing some support for prices. A further decline is still expected next week,” an international trader said.
Offer prices of ex-Indonesia and ex-Malaysia wire rod have been heard at $550-555/mt FOB, edging down by $5-10/mt from January 4. One of the major Vietnamese suppliers has kept its offers high at $580/mt FOB.
The tradable price for wire rod in the Southeast Asian market has remained at $565-570/mt CFR this week.
As of Thursday, January 11, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,926/mt ($553/mt), decreasing by RMB 120/mt ($17/mt) or down 3.0 percent since January 4, while rising by 0.31 percent compared to the previous trading day (January 10).
$1 = RMB 7.1087