The Chinese wire rod export market has continued to remain stable this week, while the approaching holiday has resulted in market participants gradually halting business.

Almost no sellers offered to the market this week, since most people do not expect any transactions to be concluded. Steel mills have kept quiet, while only a few traders still tried to keep in touch with buyers. On Friday last week, two transactions were concluded at $655/tonne fob China. The major northeast China steel mill that made the deals thereafter stopped supplying the market.

On Thursday, Kallanish assessed 6.5mm diameter mesh-grade wire rod at $655/t fob China, flat from a week earlier.

Trading is expected to be sluggish during the Chinese New Year. Uncertainty has meanwhile spread among both buyers and sellers over changes to China's export rebate policy (see separate article). Mills are aiming to add contracts to deals for April shipment which ensure the cost of any tax increase would be shared with the customer. Buyers, however, are reluctant to take on any risk, especially at the prices at which mills are currently offering.