Posted on 05 May 2023
The wire rod import market continues to move sluggishly in Southeast Asia, Kallanish notes. Buyers are not in a hurry to book material while there are some suppliers indicating lower offers from last week.
A Manila trader reports that there are suppliers inviting bids at $540/t cfr for Chinese wire rod. Another says that Chinese-origin 6.5mm diameter wire rod offers are prevailing at $555-560/tonne cfr Manila, about the same as early last week. “They are basically stable. I think action might pick up a little bit by next week,” he says.
In Vietnam, Chinese 6.5mm diameter Q195 or SAE 1008 grade wire rod is offered at $540/t cfr Ho Chi Minh City. Last week offers were at $550-555/t cfr. These offers for Chinese cargoes are widely believed to not be fully paying Chinese VAT because they are lower priced that those from the larger steel mills. Kallanish assessed SAE 1008 6.5mm diameter wire rod at $560-565/t cfr Manila, down $10 on-week.
Offers for wire rod from the large Chinese mills are around $590/t fob, Chinese trading sources report. But regional trading sources hear offers are down to around $575-580/t fob.
A Malaysian mill is offering 6.5/8/10 mm wire rod at $580/t cfr Thailand, a Thai trader reports. Last week, Indonesian wire rod was offered at $595/t cfr.
The same Malaysian mill is heard last Friday to have sold 15,000t of wire rod for May shipment at $595/t cfr to Spain. Regional traders do not dismiss the possibility of the low price of the trade especially if Friday’s cargo was combined with another lot on the same vessel which will lower freight costs. “I think they had sold some previously,” a Singapore trader says.
Source:Kallanish