The ASEAN import market for wire rod appears to have stabilized this week, supported by the rising futures market in China. At the same time, market chatter that China Customs have detained a large tonnage of steel exports at Tangshan port for checks on compliance of VAT payment has removed low-priced Chinese offers from the market.
Low-priced offers from China for 6.5mm base 1008 wire rod for August shipment were prevailing at around $515-520/tonne cfr Manila earlier this week, Manila-based trading sources say. "Offers dried up starting Tuesday," a trader notes. The last heard bookings took place last week at $510/t cfr Manila. Kallanish assesses SAE 1008 6.5mm-diameter wire rod at $510-515/t cfr Manila, unchanged on week.
In Vietnam, 6.5mm-8mm diameter SAE 1008/Q195 wire rod from China for July shipment was last offered at $520/t cfr on 2 July, up from $510/t cfr on 27 June. There are no offers after that, a southern Vietnamese trader says Thursday. Such low-priced offers are believed to be from suppliers which are willing to take the risk to evade Chinese VAT.
An Indonesian mill is heard to have raised its low-carbon 6.5mm diameter wire rod export prices to $505/t fob from $500/t fob. The mill's offer to Thailand is currently at $530/t cfr whereas bids are only up to $520/t cfr. "There are no deals so far," a trader in Bangkok says. The mill is also offering SAE 1008 wire rod currently at $537/t Ho Chi Minh City for mid-September shipment but targeting end-August shipment.
The above-mentioned Indonesian mill is heard to have managed to secure sales of 3sp 150mm billet to the domestic market at $482/t fob on 3 July, up from $480/t fob concluded last week and earlier this week.
