Although previous predictions of import wire rod offers from Turkey to the US reaching their peak turned out to be premature, sources are saying once again that offers cannot possibly got higher than levels seen this week. Traders are now offering Turkish wire rod in the US in the range of $26.50-$27.50 cwt. ($530-$540/nt or $584-$606/mt) DDP loaded truck in US Gulf ports, reflecting a $1.50 cwt. ($30/nt or $33/mt) increase from last week.
However, sources tell SteelOrbis that inquiry activity is not strong enough to support such levels, especially when US domestic spot prices are only $1.00 cwt. ($20/nt or $22/mt) more—an attractive margin for low-tonnage, fast lead-time orders. Even if US domestic spot prices rise higher—absorbing the remaining $1.00 cwt. ($20/nt or $22/mt) of a mill increase that went into effect Monday—sources say US mill will likely remain the preferred source of wire rod until demand is stronger.