The ASEAN import market for wire rod has shown signs of stabilization this week, supported by rising futures prices in China. The market has also been influenced by reports of Chinese customs authorities detaining a significant volume of steel exports at Tangshan port for VAT compliance checks, effectively removing low-priced Chinese offers from the market.
Earlier this week, Chinese offers for 6.5mm base 1008 wire rod with August shipment were available at $515-520/tonne cfr Manila. However, these offers have since dried up, with the last reported bookings occurring last week at $510/t cfr Manila. The current assessment for SAE 1008 6.5mm-diameter wire rod remains unchanged at $510-515/t cfr Manila.
In Vietnam, Chinese offers for 6.5mm-8mm diameter SAE 1008/Q195 wire rod with July shipment increased from $510/t cfr on June 27 to $520/t cfr on July 2. Since then, no new offers have been reported, possibly due to suppliers' hesitancy to risk VAT evasion.
An Indonesian mill has reportedly raised its export prices for low-carbon 6.5mm diameter wire rod to $505/t fob from $500/t fob. The mill is currently offering wire rod to Thailand at $530/t cfr, although bids are only reaching $520/t cfr. The same mill is offering SAE 1008 wire rod to Vietnam at $537/t Ho Chi Minh City for mid-September shipment, with a target for end-August shipment.
The stabilization of the ASEAN wire rod market reflects the broader trend in the region's steel sector, where prices have been influenced by developments in the Chinese market. As the situation evolves, market participants will be closely monitoring Chinese export policies and domestic demand to gauge the future direction of wire rod prices in the ASEAN region.