Chinese Wire rod export offers have been skyrocketing since 6 weeks consecutively due to improved demand and production cuts.
In a week’s duration, the export offers surge by USD 15/MT with fresh offers at around USD 490-500/MT FoB main port.
With continue surge, the offers are reached at 3 year’s high levels as the same range were last seen in May 2014.
The domestic wire offers also surged on strong demand as the nation is promoting the use domestic steel to the maximum.
In a week’s time, the domestic offers rose around 70-120 Yuan (USD 10-17). Current offers in Shanghai are at 3,820 Yuan (USD 565) and Beijing around at 4,100 Yuan (USD 606).
The rise in the offers is due to the supply crunch for billet owing to closure of the substandard mills due to the increased pollution level. Further, the Chinese government has urged steel manufacturers in the nation to produce steel through Electric Furnace route.
CIS Exports offers also gained momentum amid rise in the Chinese offers, the offers increased around USD 13/MT even though the fading buying interest from end user.
The South East Asian Imports gained pace further after rise in global market and buyers with positive demand raised their bids to secure deals. Current offers reached to USD 500-505/MT against last week trade offer i.e. USD 480-490/MT .
Source: SteelMint Research
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