Posted on 13 Aug 2021
The ASEAN import markets for wire rod remain sluggish, Kallanish notes. The recent weakness in iron ore and scrap prices has exacerbated poor sentiment in regional markets already suffering from Covid outbreaks and seasonally weak steel demand. However, certain wire rod suppliers are hiking offers.
In Manila, an Indonesian mill is offering blast furnace 6.5mm wire rod at $770/t cfr. “Demand has certainly weakened and the recent drops in iron ore and scrap prices aren’t helping market confidence either,” a Manila trader says. He received a bid for Indian induction furnace billet at only $700/t cfr against its offer of $735/t cfr.
Traders did not hear of recent deals for wire rod taking place. “The market is stagnant due to the lockdown,” another Manila trader says. Kallanish raised its SAE 1008 6.5mm diameter wire rod assessment on Thursday to $750/t cfr Manila, up $5 on-week.
Vietnamese mills are targeting blast furnace wire rod at $770/t fob, and induction furnace wire rod at $750/t fob. Freight from Vietnam to Manila is estimated at $35/t for shipments of 10,000t. A Thai trader says that he received the last offer from the abovementioned Indonesian mill at $755/t cfr on 9 August and was told that this price was no longer valid on 12 August because the new offer price is higher. The same Indonesian mill’s offer was $745/t cfr Thailand during 6 August week.
Source:Kallanish
