Chinese wire rod producers have had to actively cut their export prices to make deals. This is due to weak exports markets for the second consecutive week, Kallanish notes.

6.5mm diameter mesh grade wire rod is assessed at $510-515/tonne fob China, down $5/t week-on-week. A state-owned producer in eastern China sold wire rod to the Philippines at $515/t fob China this week, with a shipment date in July.

"Recently, the domestic market is fluctuating frequently but the demand is good. So not every mill is willing to cut prices for exports,'' a source at a major steel mill tells Kallanish.

A trader in Tangshan also says that its current prices have no advantage over the major steel mills, and offers are at a level of $520-530/t fob China. ''Only a handful of small speculative traders are willing to seek a deal at a lower price'' he says. At the same time, Kallanish heard 5,000 tonnes of non-alloy wire rod was booked at $525/t cfr Vietnam for re-export to Cambodia this week.