Although interest in new import offerings isn’t exactly robust, the 90,000-plus metric tons of Chinese wire rod that’s arrived in the US in April (much of it positions) continues to offer attractive alternatives to buyers who usually stick with the US domestic market for smaller-sized orders. Compounding the pressure on the US domestic wire rod market is the US domestic scrap trend--previous speculation of another uptick in prices in May has reversed into sideways-to-down predictions, essentially removing the last shreds of leverage US mills had in pushing through any part of this month’s price increase. Spot prices continue to operate a wide range, with the lowest end of the range still at $32.50 cwt. ($650/nt or $728/mt) ex-mill. However, pricing pressure is starting to affect the high end of the range, and transactions at the level of $34.50 cwt. ($680/nt or $761/mt) ex-mill are almost non-existent.
For anyone interested in order future tons from Turkey, offers are still in the range of $31.00-$32.00 cwt. ($620-$640/nt or $683-$705/mt) DDP loaded truck in US Gulf ports. Traders tell SteelOrbis that the while interest is weak, it might get even weaker if Turkish mills continue their efforts to firm up prices.