Asian wire rod price slumped to a four-month low on May 25 on weak demand and bearish market sentiment in China.

          Platts assessed SAE1008 6.5 mm diameter mesh-quality rod down $20/mt week on week at $750/mt FOB China, hitting a four-month low.

          Several deals were concluded on May 23 and 24 with a total volume of 20,000 mt at $750/mt FOB China which was sold by a northeastern China mill to South American market, said a market source. The mill, then, stopped quoting for export low carbon wire rod and indicate to negotiate order by order.

          The price level might still be considered as a tradable level on May 25, while the mill sold quite a few cargoes and currently stopped quoting at $750/mt FOB China, said a market source.

          A second export wire rod mill in northeast China said its low carbon wire rod offer was $760/mt FOB China for June shipment and cited that no deal was concluded.

          A trader in China said that the selling indication for Chinese material was at $750/mt FOB China and indicate that this was the lowest price that seller would accept.

          Traders were offering wire rod for cargos produced by the domestic mills in Tangshan at $707/mt FOB China, and buyers in the Philippines have received offers at $750/mt CFR Manila.

          Market sentiment has not yet recovered, said a mill source. The big fluctuation in the rebar futures in China hit the market confidence, and the futures prices continued to hit low levels.

          The most actively traded October 2022 rebar contract on the Shanghai Futures Exchange closed at Yuan 4,541/mt ($685/mt) May 25, up Yuan 9/mt from May 18, the price hit the lowest in four months during the trading session May 24 at Yuan 4,444/mt.

          The domestic wire rod price in Shanghai's retail market for Q195 6.5 mm was assessed down Yuan 20/mt ($3/mt) on the week at Yuan 4,840/mt ($727/mt) ex-stock, including 13% value-added tax.