Asian wire rod prices rise as futures move up again, ASEAN mills conclude sales

Thursday, 07 December 2023 15:37:56 (GMT+3)   |   Shanghai
       

Average offer prices for ex-China wire rod have moved up further over the past week, supported by another futures price rebound in China and the relatively balanced demand-supply situation. Moreover, ASEAN mills are gradually concluding sales in the export markets and are able to increase offers further.

Offers for ex-China wire rod have been heard at $550-570/mt FOB, increasing by $10/mt on average compared to November 30.

Ferrous metals futures prices have increased, positively affecting wire rod prices, while more wire rod producers have implemented production cuts, thereby bolstering prices. Demand and supply in the wire rod market are in a relatively balanced situation at present. “Local market participants in China are expected to conclude purchases and increase their inventory levels for the winter season, which may bolster the wire rod market in the near future. In the export market, the appreciation of the Chinese currency and the high levels of raw material prices have pushed ex-China wire rod offer prices up to high levels, while buyers have chosen to hold a wait-and-see stance as regards concluding purchases,” an international trader said.

Offer prices of ex-Indonesia and ex-Malaysia wire rod have been heard at $555-565/mt FOB, edging up by $5/mt compared to November 30. Prices have increased as some Vietnamese suppliers have managed to sell at $545-550/mt FOB for distant markets, up by $5-10/mt from the previous deal levels. An Indonesian mill also closed some negotiations at $540/mt FOB, which pushed offers to $550-555/mt FOB minimum for January shipment.

At the same time, in Southeast Asia’s import wire rod market, activity has been limited. Offers have increased for ex-ASEAN origins to $555-565/mt CFR to the Philippines and Thailand, up by $10-15/mt over the past week, while Chinese material is available at $570/mt CFR at the lowest. The workable price in the Philippines has been assessed at $545/mt CFR, up by $10/mt over the past week, but not enough for suppliers.

As of Thursday, December 7, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,011/mt ($565/mt), increasing by RMB 98/mt ($14/mt) or up 2.5 percent since November 30, while increasing by 2.48 percent compared to the previous trading day (December 6).

$1 = RMB 7.1176


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