Average offer prices for ex-China wire rod have moved up over the past week amid support from increasing raw material prices and the improved sentiments among market players. As a result, prices in the import wire rod market in Southeast Asia have increased visibly, though buyers have been reluctant to accept this hike for now.
Offers for ex-China wire rod from small mills have been heard at $540-560/mt FOB, moving up by $15/mt compared to July 20.
“During the given week, policies for rebuilding villages inside megacities in China have been issued by Chinese policymakers, exerting a positive impact on the real estate industry and also positively affecting demand for wire rod, while typhoon Doksuri will hit China in the coming days, which will reduce construction activities in the short term,” an international trader said.
Offer wire rod prices from northern mills in China have been heard at $560-580/mt CFR the Philippines, surging by $20-30/mt over the past week, while mainstream steelmakers in China have been unwilling to accept buyers’ counter-offers in the export market as they preferred to receive orders from the local market. Bids in the Philippines are still hardly above $530-535/mt CFR, but even Chinese traders who were ready to provide $530-540/mt CFR in earlier weeks have been insisting on a minimum of $550/mt CFR now.