Due to the demand from rolling mills, Chinese scrap prices are experiencing a record increase. It is clear that the rate of increase in wire rod offers is also not lower than the expectations of experts.
Scrap prices increased by at least 100 CNY/MT (14.8 USD/MT) compared to the data two weeks ago, reaching 3900 CNY/MT EXW (577 USD/MT VAT included - 502 USD/MT VAT excluded).
Wire rod prices are offered at CNY 420/MT EXW (USD 654/MT VAT included and USD 569/MT VAT excluded) in most provinces, an increase of CNY 90/MT (or USD 13.3/MT) from their pre-New Year offers.
If the increase in the supply of billets is associated with the upward trend in prices in most countries of Southeast Asia, the upward trend in the wire rod sector may be temporary, given the growth rate of rebar supply in China's domestic market.
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