Traders have recently started negotiations to sell Malaysianwire rodtoChina, which means that interest in imports of different steel products is growing inChina. Market sources have mentioned that offers have been at $440-445/mt CFRChinafor ex-Malaysiawire rod. “Negotiations are ongoing, no deal yet,” a Chinese trader said.
The major reason for the growing interest in import steel products is the ongoing higher prices in the local Chinese market. According to sources, current offers for Malaysianwire rodare at least $20-25/mt below average local prices inChina. Chinese mills’wire rodoffers to the export market are at $450-460/mt FOB, too high for customers. “We need to adapt to new market conditions,” a Chinese trader told SteelOrbis, explaining the interest in imports.
Last week, offers for Malaysia-originwire rodwere heard at $450/mt CFR Philippines, and ex-India prices were at $445-450/mt CFR, as SteelOrbis reported previously.
Moreover,Chinahas continued to book import semi-finished steel recently. According to market sources, a total of about 80,000 mt of slabs ex-India and ex-Brazil have been booked toChinaat $370-375/mt CFR. The latest offers for ex-Malaysiabillethave been at $405-410/mt CFR. Though many contacts have been signed forsemisrecently, more negotiations are ongoing for purchases, trading sources mentioned.