In the current week, Chinese Wire Rod Export offers slumps up to USD 17/MT and stood at USD 455-460/MT, FoB main port.
Following the suit, prices in Chinese domestic market also registered a fall. The prices for 8 mm wire rod (Q235) are assessed at USD 542/MT (RMB 3,730MT) in Shanghai; down by USD 25/MT (RMB 180) & with a hike of USD 14/MT (RMB 100) offers in Beijing stood at USD 566/MT (RMB 3,900/MT).
The major reason cited was weak demand amid bearish sentiments prevailing in the global market like the sharp fall in the global scrap and in the iron ore prices which pulled the finish steel prices downwards. Notably, post- continuous surge, the prices of iron ore & scrap in the global market down by USD 10-12/MT in a week duration.
Other global markets like CIS Export and South East Asian Imports registered a sharp decline of USD 25/MT. Current offers for the global market are assessed – CIS Exports at USD 445-455/MT and South East Asian Imports at USD 465-475/MT.
Indian Domestic Market:
The Indian domestic wire prices continuously surging due to shortage of the material amid bearish sentiments and rise in billet prices. Present offers for commercial grade 5.5 mm wire rod are assessed at INR 31,000-31,500/MT (USD 470-474) Ex-Durgapur, East India which increase by USD 15/MT, W-o-W.
Global Wire Rod Prices as on 28 Mar’17(Week 14)
|
Region |
Offers in USD/MT |
W-o-W |
| China export (FoB main port) | 455-460 | -17 |
| CIS export (FoB Black Sea) | 445-455 | -25 |
| South East Asia (CFR) | 465-475 | -25 |
| India Eastern Region (Ex-works) | 470-474 | +15 |
Prices in USD/MT, USD 1= RMB 6.88
Source: SteelMint Research
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