Posted on 01 Apr 2021
Regional mills in Southeast Asia have raised export offers for wire rod. But buying interest is thin because domestic demand in home markets is lagging, Kallanish notes.
This week, regional blast furnace producers have raised offer prices for low-carbon 6.5mm diameter wire rod by around $10/tonne to $690/t cfr Southeast Asia, an Indonesian market trader says.
The Indonesian wire rod market is weak, with domestic offers prevailing at the equivalent of $670/t ex-works, according to Indonesian mill sources. New construction projects by the Indonesia government have stalled because of its efforts to battle Covid-19, a Jakarta-based mill manager observes.
A Thai trader says he cannot close deals because of a wide price gap. He has an offer for Indonesian 6.5mm diameter wire rod at $695/t cif. However, a new domestic wire rod mill is offering at THB 21,500/t ($687/t), which is below $680/t import parity for 5.5mm diameter material. Since buyers are prepared to only pay up to $680/t for imports, there are no deals, says another Thai trader who notes that offers are at a minimum of $690/t cfr.
Offers for wire rod from Malaysia and Indonesia went up to as high as $690/t cfr Manila on 30 March, up from $675-680/t cfr a week ago. A local trader said on Wednesday he has not heard of recent deals despite trying to close some orders. "The price gap is too much," he says, adding that it exceeds $20/t.
Kallanish raised its SAE 1008 6.5mm diameter wire rod assessment to $670-680/t cfr Manila on Thursday, up $10 on-week.
Source:Kallanish
