Posted on 04 Aug 2023
Offers for Chinese wire rod have fallen back in the Philippines, in line with the downturn in the Chinese steel futures market, Kallanish notes.
A booking of Chinese wire rod for early-September shipment was concluded on Tuesday at $540/tonne cfr Manila, Manila-based trading sources report. “I heard that it was for a few thousand tonnes but the SHFE is sharply down today,” a Manila trader said on Thursday.
Offers for Chinese wire rod were last week at around $550/t cfr Manila. The trader thinks offers have since come down to $530-540/t cfr Manila. Low-priced offers for Chinese wire rod are long suspected by traders to be cargoes shipped out from China without full VAT payment. Kallanish assessed SAE 1008 6.5mm-diameter wire rod at $535/t cfr Manila, down $5 on-week.
In Thailand, buyers say they booked ASEAN wire rod cargoes at $542/t cif, also on Tuesday. Another says offers are still prevailing at around $545/t cif. Offers were at as high as $550/t cif last week.
Offers from the leading exporting mills in Indonesia and Malaysia are prevailing at $530-535/t fob, a regional trader said on Thursday. With the weakness in the SHFE, the market is quiet and he sees “no activity at all”.
Source:Kallanish
