Chinese wire rod export prices further decrease
2015-07-03 08:52:07 [Print]
BEIJING (Asian Metal) 3 Jul 15 - Influenced by the price drop in Chinese domestic market, wire rod export prices witness a downward trend this week. Overseas customers are not active in placing orders at the moment. Insiders deem it is unlikely for the wire rod export price to go up in the near future.
An exporter in Hangzhou, Zhejiang Province reports that the price of chrome added wire rod SAE1008 Φ6.5mm from steel mills in East China is USD330/t FOB Shanghai Port, down by USD10/t compared with that of last week.
According to the source, prices of wire rod in Chinese domestic market went down sharply in the past week. “The price of wire rod with the above-mentioned grade dropped by RMB100/t (USD16/t) in past ten days in major markets of China,” he says, adding that his customers in overseas countries ask for a lower price this week. In addition, he reports that more and more countries begin to prevent importing wire rod from China. He states that Malaysia has collected a 5% import tax for imported wire rod since the middle of June. The source complains that it is hard to conclude a deal with customers in South Asian countries.
Another exporter in Tangshan, Hebei Province states that the quotation for chrome added wire rod SAE1008 Φ6.5mm from steel mills in Tangshan is USD330/t FOB Tianjin Port, falling by USD3/t compared with that of last Friday.
Noted by the source, the price is powerless to go up without a strong support from the production cost. “Prices of steel billet in our local market dropped by RMB150/t (USD24/t) to RMB1,820/t (USD193/t) in the past month, which has been a record low in recent five years,” he says, adding that local steel mills continued to cut ex-works prices of wire rod during that time. However, local traders are not active in purchasing from mills. In his opinion, the stagnant demand and bad performance in local market bring much pressure on export business. As a consequence, exporters cut prices to attract orders. His export volume of wire rod was 7,000 tons in June, but he predicts that it cannot reach this level in July.
An exporter in Hangzhou, Zhejiang Province reports that the price of chrome added wire rod SAE1008 Φ6.5mm from steel mills in East China is USD330/t FOB Shanghai Port, down by USD10/t compared with that of last week.
According to the source, prices of wire rod in Chinese domestic market went down sharply in the past week. “The price of wire rod with the above-mentioned grade dropped by RMB100/t (USD16/t) in past ten days in major markets of China,” he says, adding that his customers in overseas countries ask for a lower price this week. In addition, he reports that more and more countries begin to prevent importing wire rod from China. He states that Malaysia has collected a 5% import tax for imported wire rod since the middle of June. The source complains that it is hard to conclude a deal with customers in South Asian countries.
Another exporter in Tangshan, Hebei Province states that the quotation for chrome added wire rod SAE1008 Φ6.5mm from steel mills in Tangshan is USD330/t FOB Tianjin Port, falling by USD3/t compared with that of last Friday.
Noted by the source, the price is powerless to go up without a strong support from the production cost. “Prices of steel billet in our local market dropped by RMB150/t (USD24/t) to RMB1,820/t (USD193/t) in the past month, which has been a record low in recent five years,” he says, adding that local steel mills continued to cut ex-works prices of wire rod during that time. However, local traders are not active in purchasing from mills. In his opinion, the stagnant demand and bad performance in local market bring much pressure on export business. As a consequence, exporters cut prices to attract orders. His export volume of wire rod was 7,000 tons in June, but he predicts that it cannot reach this level in July.
