Market Trends and Regional Differences
The ASEAN wire rod import market has shown signs of divergence this week, with differing trends across regions. In China, domestic market strength has been observed, while in other ASEAN countries, demand remains weak.
Vietnam and Philippines Prices
- In Vietnam, Chinese wire rod offers for December shipment have risen to $485/t CFR, bouncing back after a dip to $475-480/t CFR last week, as Chinese steel futures markets dropped sharply.
- For January shipments, the price for 6.5mm diameter mesh-grade wire rod from China to Manila stands at $480-485/t CFR, marking a $10/t decrease for the second consecutive week. However, a local trader reports a deal was made at $490/t CFR in Cebu, estimating freight costs to Cebu are $10-15/t higher than to Manila.
Other ASEAN Markets
- In Jakarta, a trader notes that the market remains quiet, with a major Indonesian mill offering 6.5mm mesh-grade wire rod at $490/t FOB for end-January shipments, down $5/t from last week.
- In Thailand, some suppliers are quoting $498/t CIF for Chinese wire rod, though Bangkok traders mention difficulties in securing bids. One trader has heard of a Chinese supplier offering $485-490/t CIF, believed to be shipments possibly avoiding full VAT payment in China.
Competitive Domestic Prices
- A Thai induction furnace mill has lowered its domestic wire rod price to THB 18/kg ($520/t) delivered for orders of 500t or more, with 100% pre-payment. This price has created significant competition, with other mills struggling to match the offer.
- In Malaysia, wire rod offers are at $515-520/t CIF, while the Thai mill’s wire rod is quoted at $520/t CFR.
Conclusion
The ASEAN wire rod market is experiencing mixed signals, with some regions seeing price increases due to stronger domestic markets like China, while others, particularly in Southeast Asia, continue to struggle with low demand. Traders in Thailand, Vietnam, and the Philippines are facing varied conditions, with competitive pricing and market uncertainty influencing purchasing decisions.
