Posted on 12 Aug 2022
Exporters are generally pressing for higher prices for wire rod in Southeast Asia this week, Kallanish notes. Current firmness in Chinese steel futures markets has spurred the price hikes. However, a Malaysian mill's offer for wire rod in Singapore at below its rebar prices has surprised traders.
In Manila, traders are offering 6.5mm SAE 1008 blast furnace regional wire rod for September/October shipment at $590-600/tonne cfr, up from last week’s $580-585/t. Traders have not however heard of concluded deals.
Buying interest is “still quite low, at around $20/t lower,” a Manila trader says. But he thinks that some buyers would need to return to replenish stocks before end-August. Small-tonnage bookings took place at around $570/t cfr Manila some two weeks ago. Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $580/t cfr Manila, up $7.5/t on-week.
A Thai trader reports hearing this week of at least 1,500 tonnes of 6.5mm wire rod booked for September/early October shipment at $590/t cif Bangkok. He hears that it could be for Malaysian material.
In Singapore, the same Malaysian mill is offering wire rod at $585/t truck-delivered to Singapore, unchanged from last week, importing sources say. When compared to its theoretical-weight rebar offer at $610-620/t truck-delivered to Singapore, traders in Singapore are baffled. "It’s difficult to understand," a Singapore trader says. "The offer for wire rod is actual-weight," a Singapore importer notes.
Trading sources rationalise that the Malaysian blast furnace mill lowered its wire rod export prices to Singapore to compete with an Indonesian blast furnace mill, despite the small size of the Singapore wire rod import market. The Indonesian mill was offering at $560/t fob and the Malaysian mill at $550/t fob last week, a Chinese trader reports. The Indonesian mill has suspended its offers this week, he adds.
Meanwhile, Chinese-origin wire rod is uncompetitive. A Philippine trader last heard offers were at $630/t cfr Manila. Boron-added grade SAE 1006/1008 6.5mm wire rod for end-October shipment from second-tier Chinese mills is offered at $650/t cif Thailand, a Thai trader says. “The market is still quiet. Demand is lacking while prices have increased slightly from last week,” a Bangkok trader observes.
Source:Kallanish
