Asian wire rod prices dropped on weak Chinese demand and as market participants stayed on sidelines, sources told S&P Global Platts.
S&P Global Platts assessed SAE1008 6.5 mm diameter mesh-quality rod at $513/mt FOB China on Sept. 16, down $2/mt week on week.
In the Shanghai retail market, spot Q195 6.5 mm rod was assessed at Yuan 3,830/mt ($565/mt) ex-stock, including 13% value added tax, down Yuan 100/mt week on week.
For China wire rod export market, most China export mills lifted their offers on firm wire rod export trading amid uptrend of the Yuan-dollar exchange rate, while buyers stayed on the sidelines, market sources told S&P Global Platts.
Two northeastern China mills offer at $515/mt FOB China for October to December shipment, said mill sources and three traders.
Two major export mills in eastern China all raise their offers by $5/mt to $530/mt FOB China October and November shipment, said mill sources.
It is hard to make a deal as China futures prices dropped, said two traders in China. China rebar futures prices hit a 12-week low on Sept. 16.
Chinese domestic market demand was not as strong as expected in September, which has so far not seen a significant pickup in demand that is seasonal, said market participants.
The most actively traded January 2020 rebar contract on the Shanghai Futures Exchange closed at Yuan 3,575/mt on Sept. 16, down Yuan 83/mt from Sept. 9.
Separately, Indonesia wire rod sold at $502/mt CFR Manila on Sept. 14, said a trader.
-- Analyst Chelsea Ye
Source : Steel Business Briefing
