Posted on 29 Oct 2021
The ASEAN wire rod import market fell sharply in tandem with the eroding Chinese steel market, Kallanish notes. Regional importers are hesitant to place orders because they are waiting for prices to stabilise. "With the Chinese steel futures dropping, buyers have in general retreated," a regional trader says.
Blast furnace low-carbon wire rod from Malaysia and Indonesia are heard offered at least $10/tonne cheaper from last week at around $765/tonne cfr. “The market is in downward mode. No one is asking for offers,” a Manila trader notes. He says that the wire rod offer from Malaysia is cheaper at $755-760/t cfr.
The supplier could possibly have lowered offer prices to top up recent Malaysian wire rod orders so that it can make up a full cargo, another trader says. Previous Malaysian wire rod orders were at $775/t cfr during the 22 October week. Buyers are waiting for the market to bottom out, he says. He also notes that Vietnamese blast furnace wire rod prices are uncompetitive. A leading Vietnamese mill's export price is $745-750/t fob (around $785/t cfr Manila)
“Billet is falling sharply so the new target buying price would be around $725-740/t cif Bangkok,” a Thai trader says. He reports Indian origin induction furnace 5.5mm diameter SAE 1008 grade wire rod offered at $760/t cif. This is too high as Thai buyers are aiming pay only $725/t cif for such wire rod. A deal struck for Malaysian blast furnace wire rod, comprising mostly 6.5mm diameter, at $765/t cif Bangkok during the week of 22 October.
Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $755-760/t cfr Manila, down $15 on week.
Source:Kallanish
