Cookie & Privacy Policy

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. View the privacy policy to find out more here.

Kallanish Kallanish

Knowledge matters Knowledge matters

November, 26th 2020

Free Trial Buy Subscription
NOV 19
11:24

China's wire rod export prices soar

331 Views

Chinese wire rod export prices have risen again this week, driven by the jump in the domestic market, while some Chinese steel mills stopped offering, Kallanish notes.

Wire rod export prices have increased by another $10/tonne to $550-555/t fob China. Most offers are from northern Chinese steel mills. China's steel demand remains high this week. Although planned production has also increased, most north-eastern Chinese steel output is being shipped to eastern and southern China. This has also led to a rapid decline in local steel inventories in the northeast, and the market has remained strong.

Due to good sales and higher prices, most steel mills stopped offering to the market in the second half of the week. South American buyers are still interested in Chinese material even after the price hike and have closed deals at around the $550/t fob level. Domestic demand is expected to remain strong in the short term, and tight export supply will lead to sideways prices.

On Thursday, 6.5mm diameter mesh-grade wire rod was assessed at $550/t fob China, up by $20/t from the previous assessment.