Abstract Spheroidization of lamellar cementite often occurs in cold-drawn pearlitic steel wires during galvanizing treatment, leading to the degradation of mechanical properties. Therefore, it is important to understand effects of galvanization process on microstructure and mechanical properties of cold-drawn wires. In this paper, cold-drawn steel wires were fabricated by cold drawing pearlitic steel rods from 13 mm to 6.9 mm in diameter. Thermal annealing at 450 °C was used to simulate galvanizing treatment of steel wires. Tensile strength, elongation and torsion laps of steel rods and wires with, and without, annealing treatment were determined. Microstructure was observed using scanning electron microscopy (SEM) and transmission electron microscopy (TEM). In addition, differential scanning calorimetry (DSC) was used to probe the spheroidization temperature of cementite. Experimental results showed that tensile strength of wires increased from 1780 MPa to 1940 MPa for annealing 10 min. Elongation of wires decreased for annealing 5 min. Tensile strength and elongation of wires were both influenced by the strain age hardening and static recovery processes. Notably, torsion laps of wires hardly changed when annealing time was less than 2.5 min, and then decreased rapidly. Its value became constant when the hold time is greater than 10 min. Lamellar cementite began to spheroidize at annealing >2.5 min, starting at the boundary of pearlitic grains, and moving inward. A broad exothermic peak was found at temperatures between 380 °C and 480 °C, resulting primarily from the spheroidization of lamellar cementite, which is responsible for the degradation of torsion property of cold-drawn wires.