Wire rod prices from the major Asian producers have posted some declines over the past week as mills have been trying to accelerate sales ahead of the holidays, while the benchmark Chinese market has also softened.
Offers for ex-China wire rod from the second-tier mills have been heard at $540-560/mt FOB, decreasing by $10/mt on average amid the prevailing cautious sentiments.
However, there were differences in deal prices among various exporters: for instance, wire rod from Liaoning Province-based Chinese steelmaker Yingkou Iron and Steel has been sold at $550-560/mt FOB, while wire rod from Hebei Province-based Qian’an Jiujiang Wire Rod Co. has been traded at $540/mt FOB. Major Chinese steelmaker Shagang Group has signed a deal at $550/mt FOB Zhangjiagang port. All deals were for SAE 1008 grade wire rod.
Wire rod prices in the Chinese domestic market have moved on a downtrend amid quickly increasing inventory levels as the Chinese New Year holiday (February 9-16) draws closer, though there has been some stock replenishment over the past week, which provided some support for local wire rod prices. “Rebar futures prices have continued to see big declines since Tuesday this week, exerting a negative impact on the wire rod market,” an international trader said.
Wire rod offer prices from Indonesia-based Dexin have been reported at $560/mt FOB, up $5/mt week on week, though the tradable level is still not above $550/mt FOB, as seen in the previous booking to a distant market.
Ex-Malaysia wire rod has been available at $550/mt FOB, with the average offer prices seeing a week-on-week decline of $5/mt, as demand has been limited and the main producer has been trying to accelerate sales ahead of the holidays.
In Southeast Asia’s wire rod market, the tradable level for Q235 grade has been at $540-550/mt CFR Manila, down by $5/mt over the past week. But traders have been holding back and are still accessing the lowest offers at $560-565/mt CFR.
As of Thursday, February 1, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,868/mt ($545/mt), decreasing by RMB 99/mt ($13.9/mt) or down 2.5 percent since January 25, while decreasing by 0.69 percent compared to the previous trading day (January 31).
$1 = RMB 7.1049