Average offer prices for ex-China wire rod have been stable or have seen slight declines from some suppliers compared to last week. Nevertheless, demand in Southeast Asia and in distant markets is still weak, even though further declines are doubtful.
Offers for ex-China wire rod from second-tier mills have been heard at $540-550/mt FOB, edging down by $5/mt amid the prevailing cautious sentiments among players in export markets. However, most large mills have been insisting on stable offers at $555-560/mt FOB or higher offers.
“The widespread snowy and rainy weather has resulted in rare transaction activities locally. Rumors about imposing export tariffs on semi-finished steel in the market have contributed to the prevailing cautious sentiments among market players. But sales might improve in the coming week when the weather is better,” an international trader said.
Offer prices of Indonesia-based Dexin Steel’s wire rod have been heard at $545/mt FOB, stable over the past week, while ex-Malaysia wire rod has been available at $550/mt FOB. Ex-Vietnam material has remained the most expensive at $560-570/mt FOB.
Demand in the Southeast Asian market has remained limited and the tradable level for Q235 wire rod has remained at $545-550/mt CFR Manila. The lowest offers from traders have been at $555-560/mt CFR. “Activity is still low, but not due to price, but because of low consumption. I think $555/mt CFR is achievable [in the next deals],” a trader said.
As of Thursday, February 29, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,788/mt ($543/mt), decreasing by RMB 9/mt ($1.3/mt) or 0.24 percent since February 22, while decreasing by 0.66 percent compared to the previous trading day (February 28).
$1 = RMB 7.1036