US import wire rod market steady, but cautious
Buying activity in the US import wire rod market is still following a lackluster trend as US traders await preliminary results in the AD/CVD case against wire rod producers in 10 countries, along with the imminent results from the Section 232 investigation, which covers all steel imports.
The AD/CVD investigation has had minimal impact on the market so far—if any countries involved are hit with a critical circumstances judgement, the retroactive period would cover imports arriving past June, so sources say orders booked now are “still safe.” However, the Section 232 investigation has traders reportedly “on edge,” and it is already affecting decisions such as how much position inventory they’re willing to take on.
Wire rod import arrivals are continuing to flood into US ports, with April import permits totaling 134,363 mt and May import permits totaling 110,148 mt as of May 16. But despite the state of wire rod demand in the US, traders tell SteelOrbis that there is “little incentive” to slash position prices in order to move inventory.
For now, Turkish offers of imported wire rod in the US domestic market are still ranging from $23.00-$24.00 cwt. ($460-$480/nt or $507-$529/mt) DDP loaded truck in US Gulf ports, unchanged in the last week.
*This was published on SteelOrbis website on May 19, 2017.