Traders have recently started negotiations to sell Malaysian wire rod to China, which means that interest in imports of different steel products is growing in China. Market sources have mentioned that offers have been at $440-445/mt CFR China for ex-Malaysia wire rod. “Negotiations are ongoing, no deal yet,” a Chinese trader said.
The major reason for the growing interest in import steel products is the ongoing higher prices in the local Chinese market. According to sources, current offers for Malaysian wire rod are at least $20-25/mt below average local prices in China. Chinese mills’ wire rod offers to the export market are at $450-460/mt FOB, too high for customers. “We need to adapt to new market conditions,” a Chinese trader told SteelOrbis, explaining the interest in imports.
Last week, offers for Malaysia-origin wire rod were heard at $450/mt CFR Philippines, and ex-India prices were at $445-450/mt CFR, as SteelOrbis reported previously.
Moreover, China has continued to book import semi-finished steel recently. According to market sources, a total of about 80,000 mt of slabs ex-India and ex-Brazil have been booked to China at $370-375/mt CFR. The latest offers for ex-Malaysia billet have been at $405-410/mt CFR. Though many contacts have been signed for semis recently, more negotiations are ongoing for purchases, trading sources mentioned.