Price flexibility expands in US import wire rod market

Wednesday, 02 November 2011 01:17:28 (GMT+3)   |  
       

The gradual price downticks in imported wire rod from Turkey have continued this week, as an expected boost in inventory stock-ups did not come to pass in the domestic Turkish market.  Import offers in the US are now in the range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) DDP loaded truck in US Gulf ports, reflecting a $0.75 cwt. ($16/mt or $15/nt) decline from last week.  Sources tell SteelOrbis that not only will prices drop further, but there is not even any solid price range to begin with--Turkish mills are apparently very open to negotiation, and are accepting most reasonable prices thrown their way.

With import offers now firmly beneath US domestic spot prices, traders have reported a minor bump in inquiry activity.  While many such inquiries have turned into actual bookings, most US buyers are still waiting to see what path US domestic prices take this month.  The current price range of $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt) ex-mill is unchanged from last week, but still under pressure, and with speculation pointing at a $20-$30/long ton drop in shredded scrap prices this month, there is a strong likelihood that US mills will have no choice but to drop wire rod prices for December delivery.


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