Posted on 28 Jun 2024
The ASEAN import market for wire rod weakened further this week, Kallanish notes. Suppliers appear to be caving in to weeks of market sluggishness. In Vietnam, bids are being invited for Q195 6.5mm-12mm diameter wire rod from China for July/August shipment at $505/tonne cfr Vietnam, compared to around $520/t cfr last week. “Prices are definitely under siege,” a Manila trader says.
He relates that the latest order for Chinese 6.5mm base 1008 wire rod for August shipment was booked at $510/t cfr. Last week, similar Chinese offers were at $525-530/t cfr Manila. Kallanish assesses SAE 1008 6.5mm-diameter wire rod at $510-515/t cfr Manila, down $12.5 on week. Such low-priced offers are long believed to be from suppliers which are willing to evade Chinese VAT. The traders can decide on whether to take the risk upon shipment time depending on where prices are at. “Or they simply default when the heat is on,” says the trader, noting one such case this month where the supplier paid the penalty clause which was around 4%. A leading Indonesian mill’s offer for 6.5mm low-carbon wire rod for August shipment is prevailing at $505/t fob earlier this week, compared to around $515-520/t fob last week. Around 500t was heard to have concluded to Taiwan at $503/t fob. Freight is estimated $20-25/t depending on destination port in ASEAN/Taiwan/China. Early this week, a Malaysian blast furnace mill offered wire rod at $530-535/t delivered via truck Singapore (equivalent $520-530/t cfr Singapore).
Source:Kallanish
