Chinese wire rod export offers remain unchanged after a weeklong lunar New Year holiday. Price remains unchanged consecutively for the third week and stood at USD 445-450/MT FOB, following the price stability in the domestic market as well.
It should be noted that India Govt. yesterday withdrew MIP on 19 products. It includes chapter 7213, 7214, and 7227 in which 7213 and 7227 has been shifted to provisional anti-dumping duty. India imported 0.68MnT under Bar and Rod import category till FY17 Nov’16.
The reason behind the price stability is little trade activities in the physical market post week long festive season in China. Domestic offers W-o-W remain unchanged. Domestic prices for 8 mm wire rod (Q235) were assessed at USD 520/MT (RMB 3,560/MT) in Shanghai & at USD 491/MT (RMB 3,380/MT) in Beijing.
As per the sources, rolling mill have reduced the demand of Billet as they have inventories in hand and will take approximately one week to consume the same and market to resume the work normally.
In the similar line, other international market like CIS export offers remain firm and South East Asian import offers fall by USD 8-10/MT in the same duration.
Global wire rod prices in week 06 (30 Jan-05 Feb’17)
| Region | Offers in USD/MT | W-o-W |
| China export (FoB main port) | 445-450 | 0 |
| CIS export (FoB Black Sea) | 410-420 | 0 |
| South East Asia (CFR) | 425-445 | -10 |
Prices in USD/MT, USD 1= RMB 6.86
Source: SteelMint Research
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