
Yuan depreciation slashes China rod prices, buying limited
China's wire rod export market saw downward price adjustments this week, driven primarily by RMB depreciation linked to renewed turbulence from the ongoing US-China trade tensions.
The weakening of the yuan has eroded export margins and added uncertainty to export transactions, prompting mills to revise their offers downwards.
On Thursday, 6.5mm diameter mesh-grade wire rod was assessed at $470/tonne fob China, down $15/t week-on-week. The most-traded, May 2025 rebar contract meanwhile closed at CNY 3,092/t ($423/t), down by CNY 47/t from a week before.
Adding to the pressure, demand from key Southeast Asian buyers softened as the region entered the Easter holiday period. The temporary slowdown in procurement interest has further weighed on sentiment, limiting support for prices.
A major northern China steelmaker lowered its wire rod export offer to $470/t fob China, Kallanish reports, while other domestic mill quotes hovered at around $465/t fob. Notably, speculative activity has cooled significantly, with few short-selling offers seen in the market amid heightened volatility.
Market dynamics were also influenced by China Customs stepping up checks against VAT-evading wire rod exports, effectively reducing the availability of ultra-low-priced material. As a result, many traders withheld public offers, opting instead for direct negotiations on confirmed orders with established buyers.
With the holiday lull continuing and geopolitical uncertainty unresolved, market volatility is expected to persist in the near term.
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Anonymous
Very good overview of the weekly steel market.
Anonymous