Even though small to medium-sized buyers of US domestic wire rod are paying the full $2.00 cwt. ($40/nt or $44/mt) price increase that went into effect a week ago, sources tell SteelOrbis that larger customers are still “wheeling and dealing” at the mill level for prices that don’t fully reflect the announced increase. Last week, such buyers were settling on transaction prices for $1.00-$1.50 cwt. ($20-$30/nt or $22-$33/mt) more than what they paid in November, depending on the order size, and that trend has reportedly continued this week.
However, sources say that the current flexibility from US domestic wire rod mills won’t last for long considering the relatively stability in import prices, and—more importantly—the strong uptick in US domestic scrap prices expected this month. “The minute mills factor in those higher input costs,” one source said, “all those special deals are over.”
For now, most wire rod spot transactions are still falling into the range of $25.00-$27.00 cwt. ($500-$540/nt or $549-$593/mt) ex-works, and even though buying activity is expected to dwindle as the holiday season approaches, sources believe the bottom end of the range will soon firm up to reflect the full Dec. 1 price increase.