Report by Wang,Shang-Yi
Recently, Chinese billet prices have been slowly rising, leading to an average increase of $30 per ton for imported wire rods in Southeast Asia. Indonesian wire rod prices are quoted at $595 per ton. However, the Taiwanese market is facing a decrease in demand due to the rainy season and a decline in processing orders. Despite the low prices, many industry players have entered the market early, and it remains to be seen whether the current price increase is a short-term effect.
Recently, international billet prices have rebounded to $520 per ton, and Indonesian wire rod prices have risen to $595 per ton, with an increase of $30 per ton. Indian wire rod prices, on the other hand, remain unchanged at $615 per ton. However, the market believes that future prices may still increase.
Market operators point out that the southern region has been affected by the rainy season, leading to a decrease in operating rates and a relatively reduced demand for Indonesian wire rods. Hardware orders are also average. Additionally, with low import prices in the second quarter, industry players have made large purchases, which are expected to arrive in Taiwan gradually between May and June. Therefore, the purchasing power in the Taiwanese market is not expected to be strong in June.
Industry players state that Indian wire rods are mostly used in screw production and their prices have temporarily remained stable. However, with the increase in billet prices, it is possible that future prices may rise. Nevertheless, the international market currently does not show significant fundamental demand, and price fluctuations will still depend on actual demand.
Industry players believe that despite the slight recovery in import prices recently, the overall weak demand remains a fact. Therefore, it is unlikely that the opening prices of Taiwan’s steel bars and wire rods will be greatly affected, and the downward trend may not change due to the stabilization of imported wire rod prices.
coverpicture by Wang,Shang-Yi
