Asian wire rod price increased on strong demand overseas and high prices for Chinese wire rod. The market was back after China's Mid-Autumn festival holidays Sept. 22.

          S&P Global Platts assessed SAE1008 6.5 mm diameter mesh-quality rod at $858/mt FOB China Sept. 22, up $4/mt week on week.

          Most market sources said limited wire rod cargoes for exports due to steel production cuts in China remained an issue.

          [There are] big concerns over the uncertainty of export tax for wire rod; most buyers were unable to accept the risk, sources said.

          “Demand is strong in South American markets, while clients would have concerns on the export tax risk,” said a mill source.

          One mill in northeastern China said that their offer for low carbon wire rod was at $860/mt FOB China for October shipment, up $5/mt week on week.

          Meanwhile, one eastern China mill high-carbon wire rod maker was offering at $930/mt FOB China, unchanged week on week. “Low carbon wire rod was uncompetitive for export on the price while high-carbon has some chance,” said the mill source.

          The most actively traded rebar January 2022 contract on the Shanghai Futures Exchange closed at Yuan 5,656/mt ($874/mt) Sept. 22, up Yuan 178/mt ($28/mt) from Sept. 15.

          Shanghai wire rod retail market Q195 6.5 mm rod was assessed at Yuan 5,700/mt ($881/mt) ex-stock, including 13% value added tax, up Yuan 100/mt ($16/mt) week on week.

-- Steel Business Briefing