Asian wire rod prices were mixed in the week to Jan. 7, with Chinese domestic prices rising due to speculative buying, while export market offers weakened amid subdued activity.

In Shanghai, the tradable price for Q195 6.5 mm wire rods was heard at Yuan 3,340/mt, according to a local trader.

The trader said that while wire rod prices have generally increased across regions, the market tends to be more active during periods of lower prices, adding that after the recent price rise, trading activity has been average.

“During lower price periods, there has been considerable speculative buying as winter storage approaches. Traders aim to maintain a higher basis level to instill confidence among market participants for winter storage,” the trader said.

The trader further said that recent arrivals of Q195 rods to Shanghai remain relatively low, providing support for prices.

Platts assessed prices in Shanghai’s retail market for Q195 6.5 mm wire rods at Yuan 3,390/mt ex-stock on Jan. 7, including 13% value-added tax, up Yuan 50/mt week over week.

Conversely, the export market saw subdued activity. Offers for Chinese SAE1008 6.5 mm diameter mesh-quality rod were heard at $465-$470/mt FOB China, with the most competitive offers down by $5/mt.

Market sources also observed a significant reduction in the number of non-VAT-inclusive offers.

However, export market prices did not increase. “Customers had significantly higher purchasing volumes in December compared with their normal purchasing levels in previous months, likely because they anticipated that the export licensing management would limit non-VAT inclusive offers, which may drive up prices,” a mill source in Northeast China said.

“This led them to stock up in advance, so we don’t expect much purchasing activity until mid-January.”

Platts assessed SAE1008 6.5 mm diameter mesh-quality rod at $464/mt FOB China on Jan. 7, down $2/mt week over week.