With most indications pointing toward a decrease in shredded scrap prices this month, sources tell SteelOrbis that it is inevitable that US domestic wire rod prices will drop as well. However, the decrease will most likely be quiet, with mills opting against making any sort of official announcement. Instead, they are expected to make quiet deals on a case-by-case basis, with larger customers negotiating along the lines of the scrap decrease, and smaller customers paying close to the current asking price range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/mt) ex-mill.
As for imports, Chinese offer prices have decreased by a minor $0.50 cwt. ($11/mt or $10/nt) this week, despite CFR prices dropping about $20/mt. According to trader sources, with the margin between Chinese and US domestic wire rod prices so wide, there's no need to drastically reduce future import order prices. Therefore, unless Chinese mills lower offers further, prompting US customers to demand much lower import sales prices in return, the offer range will likely remain in the new range of $29.25-$30.25 cwt. ($645-$667/mt or $585-$605/nt) DDP loaded truck in US Gulf ports. Turkish offers, meanwhile, are stable this week, still ranging from $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck in US Gulf ports. No moves are expected in the near term, as traders report that Turkish mills are more interested in moving rebar in the US for the moment, and are thus not trying to be too aggressive with prices.