Asian wire rod price rose on higher China domestic prices Aug. 25 despite sluggish demand in Southeast Asian markets amid concerns over the risk of adding steel export tax.

          The most actively traded rebar January 2022 contract on the Shanghai Futures Exchange was closed at Yuan 5,236/mt ($809/mt) Aug. 25, up Yuan 92/mt ($14/mt) from Aug. 18.

          Shanghai wire rod retail market Q195 6.5 mm rod was assessed at Yuan 5,430/mt ($839/mt) ex-stock, including 13% value added tax, up Yuan 50/mt ($8/mt) week on week.

          S&P Global Platts assessed SAE1008 6.5 mm diameter mesh-quality rod at $845/mt FOB China Aug. 25, up $10/mt week on week.

          Most China export mills have paused their offers for wire rod due to uncompetitive prices compared with other Southeast Asia materials.

          A northeastern China mill source said that offer was at $860/mt FOB China for low carbon wire rod, up $20/mt week on week.

          The source added that with the concerns over the risk of adding steel export tax, most wire rod buyers were standing at the sideline.

          “I do not think buyers would accept China prices,” a China-based trader said. Southeast Asia regional market buyers were remained calm due to slow demand.

          The other mill sources in the region said that price negotiates order by order.

          Meanwhile, one eastern China mill said its offer for high-carbon wire rod was at $920/mt, down $10/mt week on week.

          Another mill source in the same region said, “Buyers are waiting because of the uncertainty on the export tax.” “Steel production reduction in China which makes export materials less.”

          “Limited orders were received from wire rod buyers,” said a second China-based trader.

          Separately, Malaysia, Indonesia, and Vietnam-origin materials were offering in Southeast Asia markets with prices at $735/mt FOB Malaysia, $735/mt FOB Indonesia, and $720-$730/mt FOB Vietnam, respectively.

-- Steel Business Briefing