Although most
US-based traders backed off from inquiring on high carbon
wire rod offers from
China in light of the trade case, some had continued to put “feelers” out there for a too-good-to-pass-up deal until the likely direction of the case became clear. However, after the
US DOC’s preliminary ruling last week that placed estimated dumping margins in the range of 99.32-110.25 percent, even the most optimistic traders have pulled Chinese inquiries from the table, looking toward other, likely more expensive alternative sources offshore.
While this removal of Chinese imports from the equation is a boon to
US domestic high carbon
wire rod producers, headwinds from the scrap market might stave any attempt to take advantage of the situation. Sources tell SteelOrbis that despite ongoing harsh weather in the Midwest and East Coast, scrap prices are poised to fall again in March. Between those two factors lies the wild card of demand--consumer confidence in the
US has taken a hit so far this year, but if outlooks improve, steady demand for high carbon consumption could give
US wire producers the leverage they need to raise prices. Until then, prices are neutral from two weeks ago at $34.25-$35.25 cwt. ($685-$705/nt or $755-$777/mt) ex-mill for 1050/1060 grade high carbon
wire rod, and $37.25-$38.25 cwt. ($745-$765/nt or $821-$843/mt) ex-mill for 1070/1080 grade.