"Rerollers in China have been running at low rates because of a shortage of electricity, so China needs finished products such as rebar and wire rod instead," a trader in Singapore told Fastmarkets on Friday October 8.
"I think buyers in China are more keen on wire rod imports rather than billet and scrap for the time being," an eastern China steelmaker source told Fastmarkets on the same day.
The recent price surges for Chinese long steel suggest that arbitrage opportunities might be present.
Market sources in China largely expect importers to focus on wire rod for now because there are fewer restrictions on such imports.
"There are no rules concerning brand or origin for wire rod imports in China," the Shanghai-based trader said.
Fastmarkets' price assessment for mesh-quality wire rod in eastern China was 5,900-5,970 yuan ($916-926) per tonne on Friday October 8. This is equivalent to...