Even though the recent trade case against Chinese wire rod effectively pushed the prolific steel exporting nation out of the US import market, its influence can still be seen in other wire rod offers to the US. Specifically, Chinese long product mills’ aggressive pricing to the rest of the world, including the Middle East, has forced flexibility in Turkey--now the US’ primary source of imported wire rod. Dual pressures from Chinese competition and declining scrap prices in Turkey have taken their toll on offers to the US, and while traders are still offering Turkish wire rod in the US for last week’s range of $31.00-$32.00 cwt. ($620-$640/nt or $683-$705/mt) DDP loaded truck in US Gulf ports, it’s only a matter of time before that range drops.
However, lower import prices are not likely to have a significant effect on US domestic wire rod prices. Demand is still slack and sources tell SteelOrbis that order activity is “steady but nowhere near spectacular” compared to other US long products like rebar. As such, spot prices in the range of $32.50-$33.50 cwt. ($650-$670/nt or $717-$739/mt) ex-mill are expected to continue holding for the near future at least.