After US domestic rebar mills issued long-delayed price increases this week, sources within the US domestic wire rod market are speculating if a similar price trend is on the way now that the Section 232 investigation has been delayed indefinitely. At the very least, some sources say, US wire rod mills might take a “second shot” at the $1.00 cwt. ($20/nt or $22/mt) price increase that was announced in mid-June but met with enough resistance that none of it was absorbed into the market.
Sources point out that the US domestic rebar and wire rod markets are not similar in terms of demand, and this could negatively affect any chance at a price increase. However, other sources point out that scrap prices are expected to bump up again slightly this month, and results in the AD/CVD investigation against wire rod imports from 10 countries are still imminent. Combined, these market factors point to a “decent chance” of a moderate wire rod price increase going through.
Until anything is announced, spot prices for US domestic wire rod are still in the range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) ex-mill—unchanged in the last week.