Strong wire rod market in China drives regional prices up

The East Asian wire rod import market continued to grow last week. Wire rod appears to outperform rebar amid limited Chinese export supply driven by strong domestic demand in China.

Bids for SAE 1008 wire rod from Southeast Asia prevail at $ 555-560 per tonne Manila. They are $ 10 per ton higher than a week earlier. Bids from China are $ 580-585 per tonne, up $ 20-25 per tonne per week.

A Manila-based trader reports a deal to supply Indonesian wire rod for December delivery at about $ 540 a tonne earlier this week. Although he heard the highest bid on Thursday at $ 565 per tonne CFR, some traders are still offering bids at $ 555-558 per tonne CFR. Wire rod, made in an induction furnace in Vietnam, was recently ordered at $ 545 per tonne in Manila. It was for January /February shipment.

The supply of the Chinese wire rod is limited to some Chinese factories, indicating that they are already sold out for February delivery. According to the trader, the factories may have been sold out, but traders maintain their positions. He adds that negotiations are currently underway to order a shipment in January.

The Chinese trader says his company is offering 6.5mm SAE 1006 wire rod for January /February shipping at $ 600 /t, but "it is likely that some of the northern factories can cost $ 580 /t." The strong Chinese domestic PC wire market is supporting the demand for wire rod, according to a regional trader. Freight between China and the Philippines is estimated at $ 25 per ton.

Callanish on Thursday valued 6.5mm SAE 1008 wire rod at $ 550-555 per tonne in Manila. This is $ 10 per tonne up from the previous week and $ 50 per tonne up from the first week of November.