Asian wire rod in stalemate amid muted trading activity
Asian wire rod prices were stable with on mills hold and few bid orders in the market.
S&P Global Platts assessed SAE1008 6.5 mm diameter mesh-quality rod at $415/mt FOB China, unchanged week on week.
In the Shanghai retail market, spot Q195 6.5 mm rod was assessed at Yuan 3,350/mt ($474/mt) ex-works, including 13% value added tax, down Yuan 20/mt week on week.
Shanghai domestic market demand was good before Labour Day, two local traders said.
Offer level from a northeastern China mill dropped to $420/mt FOB China for May shipment Wednesday, while another northeastern China mill remained its offer at $430/mt FOB China, two mill sources said
Tradable level for some Chinese mills at $415-$420/mt FOB China for May to July shipment, some eastern China traders commented.
“It is hard to make a deal since the market has not fully resumed attribute to the coronavirus outbreak.
Only South Korea and Japan have some market demand,” an eastern China trader said, adding that buying indication heard from South Korean buyers were at $420-$430/mt CFR Korea, and Southeast Asia buyers were interested at lower than $420/mt CFR price level.
Few bid orders received from Southeast Asia buyers as their markets still suspend.
For South Korean wire rod, a China trader said he heard an offer at $430/mt CFR China for July shipment. However, some market sources said that this offer level was not attractive to China.
Separately, for Indonesian wire rod, a trader said that their selling indication was higher than $420/mt CFR Manila for July shipment, adding that a Manila buyer received an offer at $415/mt CFR.
Malaysian wire rod offered a little bit higher, heard was offering at $430/mt CFR Manila for June or July shipment, market sources said.
“It is hard to make a deal. Bid/offer spread is wide,” a trader said, “we were waiting for the market reopen in Southeast Asia.”
The most actively traded rebar contract on the Shanghai Futures Exchange October 2020 closed at Yuan 3,302/mt Wednesday, up Yuan 10/mt day on day. The contract was down Yuan 73/mt week on week.
Analyst Chelsea Ye
