Average offer prices for ex-China wire rod have moved up over the past week, also supporting price rises from ASEAN mills. Though demand in the Southeast Asian market has remained subdued, market sources have become more optimistic seeing steady increases in spot prices and in demand inside China.
Offers for ex-China wire rod from second-tier steel mills have been heard at $530-540/mt FOB, edging up by $10/mt on average. In the Chinese domestic market, bullish sentiments have prevailed among market players amid the improved demand from downstream users. Meanwhile, import iron ore prices have moved up, bolstering wire rod prices from the cost side. At the same time, rebar futures prices have increased, exerting a positive impact on wire rod prices in the spot market. Wire rod prices in the Chinese domestic market will likely edge up further in the coming week, according to market sources.
Wire rod prices from Indonesia’s Dexin have been heard at $510-525/mt FOB, with the higher end up by $5/mt over the past week. The last deal was done at the lower end of the range, while now most offers are at $520-525/mt FOB. Offer prices of ex-Malaysia wire rod have gained $5/mt to $525/mt FOB, and wire rod from Vietnam’s Hoa Phat has remained the most expensive at $530-540/mt FOB, versus $530/mt FOB last week.
Buyers in Southeast Asia mostly hold cautious sentiments amid sufficient inventories of wire rod. The tradable level for import wire rod in Southeast Asia was at $515-520/mt CFR this week, up by $5/mt from a week ago, mainly based on slightly higher offers from traders and small mills. “Buyers in the Philippines are not ready to pay above $510-515/mt CFR, but maybe in the coming few weeks the market will improve,” a trader said.
As of April 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,682/mt ($509/mt), increasing by RMB 69/mt ($9.7/mt) or 1.9 percent since April 11, while up 1.18 percent compared to the previous trading day, April 17.
$1 = RMB 7.1025